The expected simple return to a U.S. resident from putting funds into a Canadian dollar deposit yielding a simple annual nominal return of 32% while the U.S. dollar is expected to depreciate by a 4% simple rate over the year would be?
Next we find how much more Fvcanada is higher than Fv usa so we subtract the two:
next we divide this by fv usa to find by what percentage is fv canada higher:
(1.32-.96)/.96 = 37.5%
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