Question
Suppose that the one-year interest rate is 4.0 percent in the Italy, the spot exchange rate is $1.60/, and the one-year forward exchange rate is
Suppose that the one-year interest rate is 4.0 percent in the Italy, the spot exchange rate is $1.60/, and the one-year forward exchange rate is $1.58/. What must the one-year interest rate be in the United States?
a-2%
b-2.7%
c-5.32%
d-None of the above
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Technical Analysis The Complete Resource for Financial Market Technicians
Authors: Charles D. Kirkpatrick, Julie R. Dahlquist
1st edition
134137043, 134137049, 978-0131531130
