The current spot exchange rate is 375 brl per us dollar the


The current spot exchange rate is 3.75 BRL per US dollar, the one-year forward rate is 3.95, and the one-year US interest rate is 2%.

a. The implied interest rate offered by the BRL forward contract is 5.3%.

b. The implied interest rate offered by the BRL forward contract is 7.4%.

c. The implied interest rate offered by the BRL forward contract is -5.1%.

d. The implied interest rate cannot be calculated using the information provided.

e. None of the above.

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Financial Management: The current spot exchange rate is 375 brl per us dollar the
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