- 7 The Forecasted Value For The Mexican Peso Is Euro0 1200 And Its Realized Value Is Euro0 1000 What Is The Forecast Er 1 (19.64 KiB) Viewed 14 times
7. The forecasted value for the Mexican peso is Euro0.1200 and its realized value is Euro0.1000. What is the forecast er
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7. The forecasted value for the Mexican peso is Euro0.1200 and its realized value is Euro0.1000. What is the forecast er
7. The forecasted value for the Mexican peso is Euro0.1200 and its realized value is Euro0.1000. What is the forecast error (root square error) for the peso? + 8. Suppose that the annual interest rate is 4% in the U.S. and 8% in Germany, and that the spot exchange rate is $1.60/€ and the 180-day forward exchange rate is $1.58/€. Assume that an arbitrager can borrow up to $1,000,000 or €625,000. What should he do? What is the net cash flow (profit)? <>