Question
Intro You have $30,000 to invest. The spot rate for the euro is $1.1 per euro, while the 180-day forward rate is $1.11 per
Intro You have $30,000 to invest. The spot rate for the euro is $1.1 per euro, while the 180-day forward rate is $1.11 per euro. The six-monthly interest rate in the euro area is 4% and in the U.S. it is 3%. Part 1 Attempt 1/10 for 10 pts. What is your risk-free rate of return (yield) from exploiting the higher interest rate in the euro area? 4+ decimals Submit
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