You borrow usd 1m for six months, and you lend eur 1.5m-an initially equivalent amount-for six months,

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You borrow usd 1m for six months, and you lend eur 1.5m-an initially equivalent amount-for six months, at p.a. rates of 6 percent and 8 percent, respectively, with a right of offset. What is the equivalent spot and forward transaction?

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International Finance Putting Theory Into Practice

ISBN: 978-0691136677

1st edition

Authors: Piet Sercu

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Question Posted: Aug 07, 2017 09:44 AM

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You borrow usd 1m for six months, and you lend eur 1.5m-an initially equivalent amount-for six months,

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The spot transaction is usd 1m for eur 15m at St eur usd 15 an...View the full answer

International Finance Putting Theory Into Practice

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