The current exchange rate between the dollar and the Swiss franc is $ 1 . 0 4
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Question:
The current exchange rate between the dollar and the Swiss franc is $ per franc. Risk free interest rates are in the US and in Switzerland, for all maturities. The interest rates are quoted with continuous compounding.
What should be the forward price, ie the forward exchange rate, for delivery in months in dollars per franc
If the actual forward price is $ per franc. What will be your profit in months if you borrow million francs now in $
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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