In the previous question, if rates are continuously compounded and the forward exchange rate is $1.10/
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In the previous question, if rates are continuously compounded and the forward exchange rate is $1.10/€, then what is the interest differential between the two currencies?
Data in previous question,
The spot exchange rate between the euro and the dollar is $1.2/€. If the dollar interest rate is 2% for two years, the euro rate is 3% for the same maturity, and both rates are annually compounded, what is the two-year forward FX rate?
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Let r denote the interest rate and d denote the inter...View the full answer
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