Forward exchange rate for eur


Assume the spot rate for Eur/USD is 1.05. A U.S bank pays 5.0% compounded annually for a one year for a dollar deposit and a German bank pays 2.5% compunded annually for a one year Euro deposit. What is the forward exchange rate for EUR/USD one year from now?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Forward exchange rate for eur
Reference No:- TGS042150

Expected delivery within 24 Hours