Problemsuppose the exchange rate between euro and us, Ask an Expert

Accounting

Problem:

Suppose the exchange rate between euro and U.S. dollar is given as S0(€0.7000/$)and the six-month euro and dollar risk-free interest rates are 5% and 7% (both expressed with continuous compounding).

Required:

Question: What is the six-month forward exchange rate?

Note: Please show basic calculation

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172362

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