Question: Problem 17 * >> Intro The current exchange rate between the dollar and euro is $1.06 per euro. The nominal annual risk-free rate is 1%
Problem 17 * >> Intro The current exchange rate between the dollar and euro is $1.06 per euro. The nominal annual risk-free rate is 1% in the U.S. and 0.8% in Europe. Part 1 - Attempt 2/6 for 10 pts. What should be the one-year forward premium according to interest rate parity? 5+ decimals Submit Part 2 Attempt 1/6 for 10 pts. What should be the one-year forward rate according to interest rate parity (in dollars per euro)? 2+ decimals
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