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. If a US company can borrow at the 1-year interest rate of 2.25 percent in the United States, the EURUSD spot exchange rate is
. If a US company can borrow at the 1-year interest rate of 2.25 percent in the United States, the EURUSD spot exchange rate is $ 1.10000/; and the 1-year forward exchange rate is $1.12475/. What 1-year interest rate in the Eurozone would make the company indifferent between borrowing in the US versus Eurozone? a) -1% b) 0% c) 1.5% d) 2.25% a) -1% b) 0% C) 1.5% ) 2.25%
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