Question
If the Indian Rupee is trading at 82.00 Rupee per 1 USD and the threeyear forward rate is trading at 89.30 Rupee per 1 USD,
If the Indian Rupee is trading at 82.00 Rupee per 1 USD and the three–year forward rate is trading at 89.30 Rupee per 1 USD, is the market expecting a “depreciation” or an “appreciation” of the Rupee? If the INR three-year interest rate is 7% and the US interest rate is 4%, Is there an arbitrage opportunity?Explian .
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The market is expecting a depreciation of the Rupee because the forward rate is higher than the curr...
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International Accounting
Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera
5th edition
1259747980, 9781259747984, 1260466531, 978-1260466539
