Question
The euro is currently trading at 1.30 euros per dollar.The interest rate on the US Treasury Bill is 0.012 and the risk free interest rate
The euro is currently trading at 1.30 euros per dollar.The interest rate on the US Treasury Bill is 0.012 and the risk free interest rate in Europe is 0.019.What is the arbitrage free future exchange rate between the euro and the U.S. dollar for two years in the future in euros per dollar?
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
