Question
Compute the closest value of a 1-year currency forward for the Euro assuming, the spot is $0.9375/EUR, and the 1-year risk-free rates in the US
Compute the closest value of a 1-year currency forward for the Euro assuming, the spot is $0.9375/EUR, and the 1-year risk-free rates in the US and Euro-zone are 1.50% and -0.075% respectively (based on continuous compounding).
Group of answer choices
0.9375
0.9524
0.9588
1.0429
1.0667
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Authors: Heather Vescent ,Nick Selby
1st Edition
1681886545, 978-1681886541
