Find a formula like Equation (3.1) for calculating a forward premium with currency d in the numerator.

Question:

Find a formula like Equation (3.1) for calculating a forward premium with currency d in the numerator. [Hint: Substitute and into Equation (3.1) to get currency d in the denominator, and then rearrange and simplify.]

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer: