On the Forex market, you observe the following hypothetical quotes. Spot$: = 110.00-110.10 One-year interest rate $

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On the Forex market, you observe the following hypothetical quotes.
Spot$:¥ = 110.00-110.10
One-year interest rate $ = 4%-4-^%
One-year interest rate ¥ = 1% -1~%
What should be the quote for the one-year forward exchange rate $:¥? Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Global Investments

ISBN: 978-0321527707

6th edition

Authors: Bruno Solnik, Dennis McLeavey

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