A German supplier is offering two options to his American client to pay for an equipment: paying 12,000 euros in 3 months or paying 15,000 dollars in 6 months. If the annual interest rate for the euro is 8% and for the dollar is 10%, what is the "implied" exchange rate? Hint: consider the present value of both currencies.

Answer rating: 100% (QA)

Solution Calculating the implied excha... View the full answer