Question
Suppose the spot rate on June 1, 2001 was 1.01 = $1.00, and exactly 90 days later the spot rate changed to 0.99 = $1.00.
Suppose the spot rate on June 1, 2001 was 1.01 = $1.00, and exactly 90 days later the spot rate changed to 0.99 = $1.00. The interest rate in the eurozone was 8% and in the U.S was 6%. What is the effective dollar interest rate from the eurozone deposit? Hint: Annualize the rate.
Group of answer choices
a. 14.2%
b. 16.2%
c. -2.0%
d. 0.0%
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The Routledge Handbook Of Responsible Investment
Authors: Tessa Hebb, James Hawley, Andreas Hoepner, Agnes Neher, David Wood
1st Edition
0415624517, 978-0415624510
