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The current USD/Euro exchange rate is $0.89/Euro. Riskfree rates are 4.5% for the USD and 8.6% for the Euro. What is the interest rate parity
The current USD/Euro exchange rate is $0.89/Euro. Riskfree rates are 4.5% for the USD and 8.6% for the Euro. What is the interest rate parity one-year forward rate? Record your answer directly as the number of USD per one Euro. For example, if you calculated $3.75/Euro, you would record your answer as: 3.75
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