Question: What is the implied forward exchange rate between Sweden and Malaysia, if the Malaysian Ringgit offers a one-year interest rate on otherwise risk-less securities of
What is the implied forward exchange rate between Sweden and Malaysia, if the Malaysian Ringgit offers a one-year interest rate on otherwise risk-less securities of 5.7%, and the Swedish krona offers 3.8% yield for the same term and risk of security? The current spot rate for conversion is 2.1 Krona = 1 Ringgit.
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