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A company approaches a FX dealer for a forward quote on the USD/YEN with a 1-month (30- day) delivery. The spot rate is USD/YEN102.1675. The
A company approaches a FX dealer for a forward quote on the USD/YEN with a 1-month (30- day) delivery. The spot rate is USD/YEN102.1675. The dealer needs to calculate the forward points. Assume the 1-month eurodollar interest rate is 5.00% per annum and the 1-month euroYen interest rate is 7.00% per annum
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Finance For Managers
Authors: Harvard Business School Press
1st Edition
1578518768, 978-1578518760
