Question
The spot $US/Euro exchange rate is $US1.3549/Euro. The 3-month forward rate is $US1.3595/Euro. What is the Euro's forward premium (or discount) on the U.S. dollar,
The spot $US/Euro exchange rate is $US1.3549/Euro. The 3-month forward rate is $US1.3595/Euro. What is the Euro's forward premium (or discount) on the U.S. dollar, expressed as an annual percentage (and explain your answer)?
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Financial Modeling
Authors: Simon Benninga
2nd Edition
0262024829, 9780262024822
