Question: I need an answer for this question please both parts A&B? 1. Deriving the Forward Rate. Assume that annual interest rates in the U.S. are
I need an answer for this question please both parts A&B? 1. Deriving the Forward Rate. Assume that annual interest rates in the U.S. are 4 percent, while interest rates in France are 6 percent. a. According to IRP, what should the forward rate premium or discount of the euro be? b. If the euro's spot rate is $1.10, what should the one- year forward rate of the euro be
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