Question
Assume that interest rate parity holds and that 90-day risk-free securities yield 5% in the United States and 5.3% in Germany. In the spot market,
Assume that interest rate parity holds and that 90-day risk-free securities yield 5% in the United States and 5.3% in Germany. In the spot market, 1 euro equals $1.46.
What is the 90-day forward rate? Do not round intermediate calculations. Round your answer to four decimal places.
$
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The Routledge Handbook Of Financial Literacy
Authors: Gianni Nicolini, Brenda J. Cude
1st Edition
0367457776, 978-0367457778
