Absence of triangular arbitrage and forward rates Your company has ordered production equipment worth 2,000,000 Czech koruna (CZK). The equipment will be delivered in exactly one year from now, and payment will be due at delivery.

The current spot exchange rates are CZK/USD 22.51 and NOK/USD 8.86. One- year fixed interest rates are 2.46% in Norway and 2.04% in the Czech Republic.

 What is the NOK/CZK forward rate with delivery in one year?

Answer rating: 100% (QA)

To calculate the NOKCZK forward rate with delivery in one year we need to consider th... View the full answer