Question: Please answer part A and B. thanks 4. Assume that the one-year interest rate in the US is 4% and in the Eurozone is 6%.
Please answer part A and B. thanks
4. Assume that the one-year interest rate in the US is 4% and in the Eurozone is 6%. According to interest rate parity (IRP), What should the one-year forward premium or discount of the euro be? a. 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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