The home currency of FGH Co is the dollar ($) and it trades with a company...
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The home currency of FGH Co is the dollar ($) and it trades with a company in a foreign country whose home currency is the Dinar. The following information is available: Spot rate 20 Dinar per $ 3% per year Inflation rate 2% per year Home country Foreign country Interest rate 7% per year 5% per year What is the six-month forward exchange rate? The home currency of FGH Co is the dollar ($) and it trades with a company in a foreign country whose home currency is the Dinar. The following information is available: Spot rate 20 Dinar per $ 3% per year Inflation rate 2% per year Home country Foreign country Interest rate 7% per year 5% per year What is the six-month forward exchange rate?
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To calculate the sixmonth forward exchange rate we can use the interest rate parity formula F... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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