Question
If the interest rate is 4% on euro deposits and 2% on dollar deposits, while the euro is trading at $1.40 per euro, what does
If the interest rate is 4% on euro deposits and 2% on dollar deposits, while the euro is trading at $1.40 per euro, what does the market expect the exchange rate (euro/$) to be one year from now?
NB// 1.3731 is WRONG
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Fundamentals Of Futures And Options Market
Authors: John C. Hull
6th Edition
0132242265, 9780132242264
