Why do forward rates differ from spot rates, and by how much should they differ? Explain.

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Managing in a Global Economy Demystifying International Macroeconomics

ISBN: 978-1285055428

2nd edition

Authors: John E. Marthinsen

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Question Posted: Mar 09, 2016 06:49 AM

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Why do forward rates differ from spot rates, and by how much should they differ? Explain.

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The percentage difference between the spot and forward exchange rates should be approximately equa...View the full answer

Managing in a Global Economy Demystifying International Macroeconomics

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