The CAD/USD exchange rate at the beginning of the year 2015 is 1.9235. The interest rates in the year 2015 were 4.08% for Canada and 2.34% for US. Calculate the CAD/USD PPP exchange rate at the beginning of the year 2016. A. CAD/USD 1.9562 B. USD/CAD 1.9562 C. CAD/USD 1.9235 D. USD/CAD 1 8751

The CAD/USD exchange rate at the beginning of the year 2015 is 1.9235. The interest rates in the year 2015 were 4.08% for Canada and 2.34% for US. Calculate the CAD/USD PPP exchange rate at the beginning of the year 2016. A. CAD/USD 1.9562 B. USD/CAD 1.9562 C. CAD/USD 1.9235 D. USD/CAD 1 8751

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 1P

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Question

The CAD/USD exchange rate at the beginning of the year 2015 is 1.9235. The interest rates
in the year 2015 were 4.08% for Canada and 2.34% for US.
Calculate the CAD/USD PPP exchange rate at the beginning of the year 2016.
A. CAD/USD 1.9562
B. USD/CAD 1.9562
C. CAD/USD 1.9235
D. USD/CAD 1,8752

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