Assume that the nigerian naira exhibits a 6-month interest, Ask an Expert

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Assume that the Nigerian Naira exhibits a 6-month interest rate of 12 percent p.a while the U.S. dollar exhibits a 6- month interest rate of 2.5%. From the U.S investor’s point of view the U.S. dollar is the home currency. According to interest rate parity argument what should the forward rate premium of the peso with respect to the U.S. dollar be?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93056011

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