What do you think the spot rate of the Canadian dollar will be in one year?

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What do you think the spot rate of the Canadian dollar will be in one year?

The nominal (quoted) U.S. one-year interest rate is 6%, while the nominal one-year interest rate in Canada is 5%. Assume you believe in purchasing power parity. You believe the real one-year interest rate is 2% in the U.S, and that the real one-year interest rate is 3% in Canada. Today the Canadian dollar spot rate at $.90. What do you think the spot rate of the Canadian dollar will be in one year?

What do you think the spot rate of the Canadian dollar will be in one year?

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What do you think the spot rate of the Canadian dollar will be in one year?

What do you think the spot rate of the Canadian dollar will be in one year?

What do you think the spot rate of the Canadian dollar will be in one year?

What do you think the spot rate of the Canadian dollar will be in one year?

What do you think the spot rate of the Canadian dollar will be in one year?

Best Available Writers