The annual one-year interest rates are 4 in euros and 5 in


Suppose that the spot € : $ is equal to 1.1795. The annual one-year interest rates are 4% in Euros and 5% in USD.

What is the 1 year forward exchange rate?

In the F/S = (1 + rFC)/(1 + rDC) formula, which currency do I put in the numerator and why?

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Financial Management: The annual one-year interest rates are 4 in euros and 5 in
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