Interest Rate

by | Sep 4, 2021 | Homework Help

Write the following data S($1.60/1Euro), F360($1.58/Euro), $ Interest is 2% and Euro Interest Rate is 4%. I am trying to find the 1 year fwd exchange rate in $ per Euro that satifies IRP from the perspective of a customer that borrowed $1m traded for Euro at the spot and invested at Interest of euro for 4%.

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