Question
A GLOBAL INVESTOR GATHERED INFORMATION ON CURRENCIES AND INTEREST RATES IN FRANCE AND THE UNITED KINGDOM AS SHOWN BELOW: Discrete risk-free rate (France) 6.00% Discrete
A GLOBAL INVESTOR GATHERED INFORMATION ON CURRENCIES AND INTEREST RATES IN FRANCE AND THE UNITED KINGDOM AS SHOWN BELOW:
Discrete risk-free rate (France) 6.00% Discrete risk-free rate (United Kingdom) 4.00% Spot exchange rate per British pound 1.2710 Market price of a 90-day futures contract on GBP () 1.2758
The discrete risk-free rate in France is 6.00%.
Therefore, the continuously compounded risk-free rate in France must be
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Finance Of International Trade
Authors: Eric Bishop
1st Edition
0750659084, 978-0750659086
