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17 BRYT F9 F10 FT The Albanian 1-year Treasury Bills in Euro has a rate of 0.8% or in 3-year This ALL at 4%
17 BRYT F9 F10 FT The Albanian 1-year Treasury Bills in Euro has a rate of 0.8% or in 3-year This ALL at 4% (he current spot rate of the EURO is ALL 122. The one year forward rate of Euro is ALL 12 you enter in a forward contract with the Bank. Show if you can benefit from such circumstances and calculate by how much. Calculate the Forward Rate Premium If the Interest Rate Parity were to hold, calculate the appropriate forward rate premium. Then from determine the appropriate forward rate of Euro to ALL Draw the IRP line in a graph and show when appropriate forward rate (point A) and where the actual forward rate of Euro at ALL 125 (point B located
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