Assume that interest rate parity holds and that 90-day, Ask an Expert

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Assume that interest rate parity holds and that 90-day risk-free securities yield 6% in the United States and 6.3% in Germany. In the spot market, 1 euro equals $1.40 dollar.

Is the 90-day forward rate trading at a premium or discount relative to the spot rate?

What is the 90-day forward rate? Round your answer to four decimal places. $

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91594134

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