Question
If the spot exchange rate EUR:USD = $0.9245, the three-month risk-free rate in the U.S. is 3.1% (stated on an annual basis) and the three-month
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If the spot exchange rate EUR:USD = $0.9245, the three-month risk-free rate in the U.S. is 3.1% (stated on an annual basis) and the three-month risk-free rate in EU (European Union) is 5.50% (stated on an annual basis), what should the three-month forward exchange rate EUR:USD be? [Note: use 14 as the relevant period.]
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Multinational Finance Evaluating The Opportunities Costs And Risks Of Multinational Operations
Authors: Kirt C. Butler
6th Edition
111921968X, 978-1119219682
