Question
The current USD/euro exchange rate is 1.4000 dollar per euro. The six month forward exchange rate is 1.3950. The six-month USD interest rate is 1%
The current USD/euro exchange rate is 1.4000 dollar per euro. The six month forward exchange rate is 1.3950. The six-month USD interest rate is 1% per annum continuously compounded. Estimate the six-month euro interest rate.
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Financial Markets And Corporate Strategy
Authors: Mark Grinblatt, Sheridan Titman
2nd Edition
0071157611, 9780071157612
