Valid CFA-Level-I Dumps shared by ExamDiscuss.com for Helping Passing CFA-Level-I Exam! ExamDiscuss.com now offer the newest CFA-Level-I exam dumps, the ExamDiscuss.com CFA-Level-I exam questions have been updated and answers have been corrected get the newest ExamDiscuss.com CFA-Level-I dumps with Test Engine here:
The current exchange rate between Thai bahts and US dollars is 35 baht/$1. The one year interest rate available on US treasury securities is 4.5%, and the equivalent rate on Thai debt instruments is 13.5%. According to interest rate parity, what should the one year forward Baht/$ exchange rate be?
Correct Answer: B
F/35 = (1 + 0.135)/(1 + 0.045);F = 38.014, remember the higher interest rate currency is expected to depreciate.