Question: asap do only if u know The US dollar is selling in India at 55.50. If the interest rate for a 6 months borrowing in

asap do only if u know The US dollar is selling

asap do only if u know

The US dollar is selling in India at 55.50. If the interest rate for a 6 months borrowing in India is 10% per annum and the corresponding rate in USA is 4%: [Nov 2012) a. Do you expect that US dollar will be at a premium or at discount in the Indian Forex Market? b. What will be the expected 6 months forward rate for US dollar in India? And c. What will be the rate of forward premium or discount

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