The spot rate on the euro is $1.39, and the 180-day forward rate is $1.41. What are possible reasons for the difference between the two rates?
Answer to relevant QuestionsGerman government bonds, or Bunds, currently are paying higher interest rates than comparable U.S. Treasury bonds. Suppose the Bundesbank eases the money supply to drive down interest rates. How is an American investor in ...Suppose that in Japan the interest rate is 8% and inflation is expected to be 3%. Meanwhile, the expected inflation rate in France is 12%, and the English interest rate is 14%. To the nearest whole number, what is the best ...Suppose today's exchange rate is $1.55/€. The six-month interest rates on dollars and euros are 6% and 3%, respectively. The six-month forward rate is $1.5478. A foreign exchange advisory service has predicted that the ...Suppose the trade imbalances of the 2000s largely disappear during the next decade. What is likely to happen to the huge global capital flows of the 2000s? What is the link between the trade imbalances and the global ...What are some indicators of country risk? Of country health?
Post your question