Question: Problem 17 Intro The current exchange rate between the dollar and euro is $134 per euro. The nominal annual risk-free rate is 2% in the
Problem 17 Intro The current exchange rate between the dollar and euro is $134 per euro. The nominal annual risk-free rate is 2% in the US and 0 8% in Europe, Part 1 Attempt 1/6 for 10 pts What should be the one-year forward premium according to interest rate parity? 4+ 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 Submit
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