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The current spot exchange rate is $2.0711/ and the three-month forward rate is $2.1063/. You enter into a long position on 140,000. At maturity, the
The current spot exchange rate is $2.0711/ and the three-month forward rate is $2.1063/. You enter into a long position on 140,000. At maturity, the spot exchange rate is $2.0894/. How much have you made or lost? lost $2,562 made $2,562 lost $4,928 made $4,928 lost $2,366 made $2,366 Suppose that the one-year interest rate is 5.43% in the United States, the spot exchange rate is $1.3379/1.00, and the one-year forward exchange rate is $1.3704/1.00. Based on interest rate parity, what must the oneyear interest rate be in the euro zone? 2.930% 7.991% 2.846% 2.429% 4.805% 3.545%
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