The spot rate is given to you as 1.0983 USD/EUR. The 3-month forward rate is provided by a broker as 1.1013 USD/EUR. The 3-month treasury bill rate in the United States is 0.08%. What is the 3-month Euro treasury bill rate that would be in equilibrium with the rest of these data?

 1. 0.1926 % 

 2. -0.001926 % 

 3. -0.1926 % 

  4. 0.001926 %

Answer rating: 100% (QA)

R us Risk free rate in US 8 given R eur Risk free rate in EUR to be calculated A... View the full answer