Question
Assume that interest rate parity holds. The interest rate on euros is 8%. The interest rate in the U.S. is 5%. What should we expect
Assume that interest rate parity holds. The interest rate on euros is 8%. The interest rate in the U.S. is 5%. What should we expect the difference between the spot and forward rates to be? Remember that, directionality, that is, positive or negative sign matters.
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The Oxford Handbook Of The Sociology Of Finance
Authors: Karin Knorr Cetina, Alex Preda
1st Edition
0198708777, 978-0198708773
