Question
On the Forex market, you observe the following hypothetical quotes: Spot rate: :$ = 1.2375 One-year interest rate in the US = 0.50% One-year interest
On the Forex market, you observe the following hypothetical quotes:
Spot rate: :$ = 1.2375
One-year interest rate in the US = 0.50%
One-year interest rate in UK = 0.25%.
What should be the quote for the one-year forward exchange rate of $:?
| A. | 1.2344 | |
| B. | 0.8061 | |
| C. | 1.2406 | |
| D. | 0.8101 |
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Essentials Of Health Care Finance
Authors: William O. Cleverley, James O. Cleverley
8th Edition
1284094634, 978-1284094633
