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 one-year interest rate be in the United States?
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CFIN
Authors: Scott Besley, Eugene Brigham
5th edition
1305661656, 9781305888036 , 978-1305666870
