What will be the forward cny-cad exchange rate in two years

Reference no: EM133616114

Problem: Assume that in Canada the nominal interest rate is equal to 4% per year and in China the nominal interest rate is 9% per year. The current Chinese Yuan/Canadian Dollar (CNY/CAD) exchange rate is 5CNY/CAD. Based on these figures, what will be the forward CNY/CAD exchange rate in two years?

Reference no: EM133616114

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