You know the following the interest rate in the is 10 and, Ask an Expert

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You know the following. The interest rate in the $ is 10% and in the euro it is1 6%. If the spot ER is euro/$ 1 (meaning 1 euro for 1 dollar.) SHOW IN DETAIL what the forward rate will be. Assume that interest rate parity in an absolute form holds true. EXPLAIN your answer.

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Financial Management, Finance

Category:- Financial Management
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