Question
Interest rates on the U.S. dollar are 0.5% and euro rates are 1.5%. Given a dollar per euro spot rate of 1.3, what is the
Interest rates on the U.S. dollar are 0.5% and euro rates are 1.5%. Given a dollar per euro spot rate of 1.3, what is the 6-month forward rate ($/E)?
(a) 1.212
(b) 1.217
(c) 1.252
(d) 1.294
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
