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The current USD/euro exchange rate is 1.397 dollar/euro. The 5- month forward exchange rate is 1.394. The 5-month USD interest rate is 1% per annum

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The current USD/euro exchange rate is 1.397 dollar/euro. The 5- month forward exchange rate is 1.394. The 5-month USD interest rate is 1% per annum (cont. comp). Estimate the 5-month euro interest rate. (enter in decimal form. 1.5% would be entered 0.0150. round to 0.0001) You Answered 0.0484 Correct Answer 0.0152 margin of error +/- 0.0002

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