Question
Forecasting the Future Spot Rate Based on IFE. Assume that the spot exchange rate of the South African rand (ZAR) is USD .06. The 180-day
Forecasting the Future Spot Rate Based on IFE.
Assume that the spot exchange rate of the South African rand (ZAR) is USD .06. The 180-day interest rate (annualized) is 1% in the United States and 6% in South Africa. What will the spot rate ZARUSD be in 6 months, according to the IFE? (You may use the approximate formula to answer this question.)
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
