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1. The spot rate of Canadian dollar to US dollar is 0.73000 and the 6-month forward rate is 0.73057. What is the premium from the existing spot rate for the 6-month Canadian dollar?
a. 0.108%
b. 0.114%
c. 0.156%
d. 0.161%
2. In economic expansions, the dollar usually
A) remains unaffected.
B) depreciates.
C) appreciates.
D) follows no consistent pattern.
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