Suppose the spot and six-month forward rates on the Norwegian krone are NKr 5.71 and NKr...
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Suppose the spot and six-month forward rates on the Norwegian krone are NKr 5.71 and NKr 5.86, respectively. The annual risk-free rate in the United States is 3.51 percent, and the annual risk-free rate in Norway is 5.21 percent. Using the approximation, what would the six-month forward rate on the Norwegian krone have to be to prevent arbitrage? Note: Do not include the Norwegian krone sign (NKr). Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616. Forward rate NKr Suppose the spot and six-month forward rates on the Norwegian krone are NKr 5.71 and NKr 5.86, respectively. The annual risk-free rate in the United States is 3.51 percent, and the annual risk-free rate in Norway is 5.21 percent. Using the approximation, what would the six-month forward rate on the Norwegian krone have to be to prevent arbitrage? Note: Do not include the Norwegian krone sign (NKr). Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616. Forward rate NKr
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