Question
Assume the 5-year interest rate in US is 5.5% and the interest rate is 7.5% in Germany. If the current spot rate is $1.08/, what
Assume the 5-year interest rate in US is 5.5% and the interest rate is 7.5% in Germany. If the current spot rate is $1.08/, what is the value of the forward exchange rate that prevents covered interest arbitrage?
| 0.9832 | ||
| 0.9375 | ||
| 0.9914 | ||
| 0.9564 |
please give solutions
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
9780073530703
