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Interest rates in Hungary are currently 8 . 2 5 % p . a . and in Europe interest rates are currently offered at 4
Interest rates in Hungary are currently pa and in Europe interest rates are currently offered at pa Current exchange rates are GBPHUF and EURGBP The GBPHUF one year forward points are The EURGBP one year forward points are Note: Points are quoted to the last significant digit in the quotation. a What is the current cross rate for the value of the Euro in terms of Hungarian Forint in the spot market? b Generate a oneyear forecast for the value of the Euro in terms of Hungarian Forintusing unbiased forward expectations Decimal places c Generate a threeyear forecast for the value of the Euro in terms of Hungarian Forint Lira using the International Fisher Effect. Decimal places You may assume that the yield curve is flat. Show all workings.
Interest rates in Hungary are currently pa and in Europe interest rates are currently offered at pa Current exchange rates are GBPHUF and EURGBP
The GBPHUF one year forward points are The EURGBP one year forward points are Note: Points are quoted to the last significant digit in the quotation.
a What is the current cross rate for the value of the Euro in terms of Hungarian Forint in the spot market?
b Generate a oneyear forecast for the value of the Euro in terms of Hungarian Forintusing unbiased forward expectations Decimal places
c Generate a threeyear forecast for the value of the Euro in terms of Hungarian Forint Lira using the International Fisher Effect. Decimal places You may assume that the yield curve is flat.
Show all workings.
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