Question
1. On the Forex market, you observe the following hypothetical quotes. Spot:$:= 175.00 - 182.10 One year interest rate $: 5% -5 1/4 % One
1.On the Forex market, you observe the following hypothetical quotes.
Spot:$:= 175.00 - 182.10
One year interest rate $: 5% -51/4%
One year interest rate :2% -21/4%
What should be the quote for the 120-day forward exchange rate $:?
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
