Question
1-Suppose the 4-year spot rate 10%, 2-year spot rate is 11%, and 2-year forward rate 4 years from now is 12%. If Unbaised Expectations Theory
1-Suppose the 4-year spot rate 10%, 2-year spot rate is 11%, and 2-year forward rate 4 years from now is 12%. If Unbaised Expectations Theory holds, what is the 4-year forward rate 2 years from now?
2-Following are the market quotations for Dollar, Euro, and Yen: EUR/JPY= 0.025 USD/JPY= 0.036 What is the cross rate USD/EUR?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Millon Cornett
1st International Edition
0071181334, 9780071181334
