The current U. S. dollar / Chinese yuan currency spot rate is $0.130 per yuan. The fair value price for the U. S. dollar / Chinese yuan exchange rate for a 2-year forward contract is $0.1408. If the U. S. dollar denominated annual interest rate is 6.0%, the Chinese yuan-denominated annual interest rate must be 3%.
a) true
b) false
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Home » Business » The current U. S. dollar / Chinese yuan currency spot rate is $0.130 per yuan. The fair value price for the U. S. dollar / Chinese yuan exchange rate for a 2-year forward contract is $0.1408. If the U. S. dollar denominated annual interest rate is 6.