Question
Suppose the spot US$ to Euro rate S = 1.10; the 6-month borrowing rate in Euros = R Euro = .01; the 6-month future exchange
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? Show all steps
|
| 0.01 | |
|
| 0.032 | |
|
| 0.065 | |
|
| None of the Above |
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Real Estate Development Principles And Process
Authors: Mike E. Miles, Laurence M. Netherton, Adrienne Schmitz
5th Edition
0874203430, 978-0874203431
