Today the spot exchange rate between the lira and the dollar is 8.4TRY/$. The risk-free interest rates
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Question:
Today the spot exchange rate between the lira and the dollar is 8.4TRY/$. The risk-free interest rates in the United States and in Turkey are 2% and 19%, respectively. What should the futures price on dollar for a contract with six month maturity?
Since the interest rates are very high in Turkey compared to the United States, should investors bring their money to Turkey?
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