Suppose the Eurosterling rate is 15%, and the Eurodollar rate is 11.5%. What is the forward premium

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Suppose the Eurosterling rate is 15%, and the Eurodollar rate is 11.5%. What is the forward premium on the dollar?

(Using forward premium formula under Interest Rate Parity.)

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Global Investments

ISBN: 978-0321527707

6th edition

Authors: Bruno Solnik, Dennis McLeavey

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Posted Date: May 09, 2022 02:51 AM

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Suppose the Eurosterling rate is 15%, and the Eurodollar rate is 11.5%. What is the forward premium

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The forward premium on the dollar is 45 The formula fo... View the full answer

Global Investments

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