The $ spot foreign exchange rate 5 7 US dollar interest rate 3 p and the Cedi interest rate 26 p a Calculate the three month forward FX rate between the cedi and the dollar Based on your answer in (i), indicate whether the cedi is trading at a discount or at a premium to the US dollar Explain why t...

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[Solved] The $/ spot foreign exchange rate = 5.7;

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The $/ spot foreign exchange rate = 5.7; US dollar interest rate = 3% p. and the Cedi interest rate = 26% p.a. Calculate the

The $/ spot foreign exchange rate = 5.7; US dollar interest rate = 3% p. and the Cedi interest rate = 26% p.a.

Calculate the three month forward FX rate between the cedi and the dollar.

Based on your answer in (i), indicate whether the cedi is trading at a discount or at a premium to the US dollar. Explain why the

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