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Unanswe 6. You are given the following information: Spot exchange rate (AUD/CHF) 1.2500 Three month forward rate (AUD/CHF) 1.2585 Australian three month interest rate 10.5%
Unanswe 6. You are given the following information: Spot exchange rate (AUD/CHF) 1.2500 Three month forward rate (AUD/CHF) 1.2585 Australian three month interest rate 10.5% p.a. Swiss three month interest rate 7.5% p.a. Q6-a Is there any violation of CIP? (1.5 marks) A- is there any violation of cip? B- calculate the covered margin (going short on the AUD) C- calculate the interest parity forward rate and compare it with the actual forward rate D- calculate the forward spread and compare it with the interest differential E- what would arbitragers do? Unanswe 6. You are given the following information: Spot exchange rate (AUD/CHF) 1.2500 Three month forward rate (AUD/CHF) 1.2585 Australian three month interest rate 10.5% p.a. Swiss three month interest rate 7.5% p.a. Q6-a Is there any violation of CIP? (1.5 marks) A- is there any violation of cip? B- calculate the covered margin (going short on the AUD) C- calculate the interest parity forward rate and compare it with the actual forward rate D- calculate the forward spread and compare it with the interest differential E- what would arbitragers do
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Forecasting And Predictive Analytics With Forecast X
Authors: Barry Keating, J. Holton Wilson, John Solutions Inc.
7th International Edition
1260085236, 9781260085235
