Concept of spot-forward pricing parity
Question 1: Illustrate the concept of "Spot-Forward pricing parity" relationship with a numerical example.
Question 2: What are the implications of this for Foreign Exchange Market?
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The same television costs 312.5 euros. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar?
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Illustrate the concept of "Spot-Forward pricing parity" relationship with a numerical example.
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