Question
The following information has been collected from the respective areas: Assumptions London New York Spot exchange rate ($/) 1.3264 1.3264 One-year Treasury bill rate 3.5%
The following information has been collected from the respective areas: Assumptions London New York Spot exchange rate ($/) 1.3264 1.3264 One-year Treasury bill rate 3.5% 4.39% Expected inflation rate Unknown 1.250% Given this information what is the implied forward rate ($/)?
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
