Question
you may invest your money either in Argentina at 4% or in Brazil at 2%. If the forward premium is 1.5%, then which of the
you may invest your money either in Argentina at 4% or in Brazil at 2%. If the forward premium is 1.5%, then which of the following is correct?
| You must invest in Argentina | ||
| You must invest in Brazil | ||
| Investments in Brazil and Argentina will have the same return | ||
| None |
QUESTION 3
-
(SF: Swiss Frank)
Spot exchange rate for $/SF is 1.2
US interest rate is 2%, whereas the Swiss interest rate is 4%. What is the 30 day forward $/SF exchange rate?
1.2963
1.1976
2.200
0.55
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International Finance The Markets And Financial Management Of Multinational Business
Authors: Maurice D. Levi
3rd Edition
0070376875, 978-0070376878
