1 the spot rate on the euro is 139 and the 180-day forward, Ask an Expert

Management Studies

1. The spot rate on the euro is $1.39, and the 180-day forward rate is $1.41. What are possible reasons for the difference between the two rates?

2. German government bonds, or Bunds, currently are paying higher interest rates than comparable U.S. Treasury bonds. Suppose the Bundesbank eases the money supply to drive down interest rates. How is an American investor in Bunds likely to fare?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M92033049

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