Question
A spot exchange rate between Korean Won (KRW) and the United States Dollars (USD) is 0.420 USD per KRW. If the risk-free interest rate in
A spot exchange rate between Korean Won (KRW) and the United States Dollars (USD) is 0.420 USD per KRW. If the risk-free interest rate in the US is 5%per annum with continuous compounding while the risk free rate in Korea is 2%per annum with continuous compounding, what should be the futures exchange rate for a 7-month contract?
*Use at least 6decimals for accuracy
| 0.4373 USD/KRW | ||
| 0.4214 USD/KRW | ||
| 0.4274 USD/KRW | ||
| 0.4333 USD/KRW |
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Project Financing Analyzing And Structuring Projects
Authors: Frank J Fabozzi, Carmel De Nahlik
1st Edition
9811232393, 9789811232398
