What must the one-year forward exchange rate
Suppose interest rates in the U.S. are 5% when the spot exchange rate is $1.55 = €1 and the interest rate in the euro zone is 8% per year. What must the one-year forward exchange rate be?
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suppose you observe the following exchange rates sfr 085 ie sfr 1 85 the one-year forward rate is 1sfr 0935 ie sfr 1
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suppose interest rates in the us are 5 when the spot exchange rate is 155 euro1 and the interest rate in the euro zone
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