Question
US Banks pays 3% interest for a 1 year deposit. European Banks pay 5% interest over the same period. The spot F/X Rate is 1.02
US Banks pays 3% interest for a 1 year deposit. European Banks pay 5% interest over the same period. The spot F/X Rate is 1.02 Euro/USD. What is the expected Exchange rate in 1 year?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
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