Question
I need help in my calculation for the below scenario in finding the forward rate The foreign exchange department at Tokyo's Daiwa Bank quoted the
I need help in my calculation for the below scenario in finding the forward rate
The foreign exchange department at Tokyo's Daiwa Bank quoted the spot rate on the euro at 0.007250/. The 90-day forward rate is quoted at a premium of 4.80 percent on the euro.
I have figured .008642
.0480 * 4 * .007250 = .001392
.001392 + .007250 = .008642
forward rate = .008642
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Business Mathematics
Authors: Charles MillerStanley SalzmanStanley SalzmanGary Clendenen
11th Edition
0321500121, 9780321500120
