Question
Assume that rEUR= 8%, rUSD= 3%and X0USD/EUR= 1.28. You want a long forward position in EUR 210,000 1-Year forward. Your banker quotes you the following
Assume that rEUR= 8%, rUSD= 3%and X0USD/EUR= 1.28. You want along forwardposition in EUR 210,000 1-Year forward. Your banker quotes you the following USD/EUR forward rate: F1USD/EUR= 1.25. Which choice is more favorable, the actual forward contract or set up a synthetic forward position?
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Investing In Financial Research A Decision Making System For Better Results
Authors: Cheryl Strauss Einhorn, Tony Blair
1st Edition
1501732757, 9781501732751
