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Right now, the exchange rate between the U.S. dollar and the euro is $1.12 / , and the cost of borrowing on eurodollars is currently
Right now, the exchange rate between the U.S. dollar and the euro is $1.12 / , and the cost of borrowing on eurodollars is currently 2% annually. To borrow euroeuros, you would have to pay 2.4% annually. If interest rate parity holds, what would be the 6-month forward quote on dollars to euros?
$1.1156 /
$1.1244 /
$1.1222 /
$1.1178 /
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