The spot rate on the euro is 139 and the 180-day forward


1. The spot rate on the euro is $1.39, and the 180-day forward rate is $1.41. What are possible reasons for the difference between the two rates?

2. German government bonds, or Bunds, currently are paying higher interest rates than comparable U.S. Treasury bonds. Suppose the Bundesbank eases the money supply to drive down interest rates. How is an American investor in Bunds likely to fare?

Request for Solution File

Ask an Expert for Answer!!
Business Management: The spot rate on the euro is 139 and the 180-day forward
Reference No:- TGS01681101

Expected delivery within 24 Hours