Question
US interest rate is 5.00% and Mexico Interest rate 11.25% (same rate for 3 months and three years). The currency spot exchange rate is 17.24
US interest rate is 5.00% and Mexico Interest rate 11.25% (same rate for 3 months and three years). The currency spot exchange rate is 17.24 MEX/$, Mexican Peso per one US Dollar (use either discreate or continuous version)
- Price a 3 months forward contract.
b. Price a three years forward contract.
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Financial Markets And Institutions
Authors: Jeff Madura
6th Edition
0324162618, 978-0324162615
