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Question 23 Suppose Current spot rate of Euro (EUR) = $1.3543 Current t-year forward rate for EUR - $1.2908 1-year interest rate in the US.

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Question 23 Suppose Current spot rate of Euro (EUR) = $1.3543 Current t-year forward rate for EUR - $1.2908 1-year interest rate in the US. - 3.5% 1 year interest rate in the Euro Zone. 75% if you knew that the spot rate of EUR one year later would be $12975, then you should borrow in and invest in TURUSO USD, EUR

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