Question
Assume that interest rate parity holds and that 90-day risk-free securities yield 6% in the United States and 6.3% in Germany. In the spot market,
Assume that interest rate parity holds and that 90-day risk-free securities yield 6% in the United States and 6.3% in Germany. In the spot market, 1 euro equals $1.50.
What is the 90-day forward rate? Do not round intermediate calculations. Round your answer to four decimal places.
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
