CIP: You are told that the current exchange rate on Bitcoin is 19200-19206. Assume that the 12-month
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Question:
- CIP: You are told that the current exchange rate on Bitcoin is 19200-19206. Assume that the 12-month investment and borrowing rates in the US are 3.5% and 3.0% (annual) respectively. If the one year forward rate on Bitcoin is 19710 - 19750, what range of interest rates in Bitcoin investments does that imply?
Expert Answer:
The forward rate is F 19750 and the current rate is S 19200 so we can calculate the forward premium ... View the full answer
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