A bank wishes to borrow an amount in euros for 9 2 days in the euro interbank
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Question:
A bank wishes to borrow an amount in euros for days in the euro interbank market, the day interest rates are annualized At the same time, it can access the market for euroyens where the rates for the same period, are annualized The current exchange rate is euro yens and the days forward rate is euro yens. Calculate the cost of funding if the bank chooses the yen loan and at the same time the forward sale of euros, for yeans.
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