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?
There has been huge growth in foreign exchange investment of average investors, for example, stay at home or working from home moms.
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Illustrate the concept of "Spot-Forward pricing parity" relationship with a numerical example.
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