Question
Suppose the spot US$ to Euro rate S = 1.10; the 6-month borrowing rate in Euros = REuro= .01; the 6-month future exchange rate US$
Suppose the spot US$ to Euro rate S = 1.10; the 6-month borrowing rate in Euros = REuro= .01; the 6-month future exchange rate US$ to Euros F =1.13. What US$ 6-month interest rate (RUS) would preserve interest rate parity? Which Answer: A.0.01 B.0.032 C.0.065 D.None of the Above
Please show in excel and the formula.
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The Routledge Handbook Of FinTech
Authors: K. Thomas Liaw
1st Edition
0367263599, 978-0367263591
