Question
Suppose that the one-year interest rate is 5.0 percent in the United States and 3.5 percent in Germany, and the one-year spot exchange rate is
Suppose that the one-year interest rate is 5.0 percent in the United States and 3.5 percent in Germany, and the one-year spot exchange rate is $1.16/Euros. What must the spot exchange rate be?
a. $1.1768/euros
b. $1.1434/euros
c. $1.12/euros
d. none of above
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
