Intro The current exchange rate between the dollar and euro is $1.18 per euro. The nominal annual risk-free rate is 2% i
Posted: Mon Apr 25, 2022 8:39 am
Intro The current exchange rate between the dollar and euro is $1.18 per euro. The nominal annual risk-free rate is 2% in the U.S. and 0.8% in Europe. Part 1 | Attempt 1/10 for 10 pts. What should be the one-year forward premium according to interest rate parity? 4+ decimals Submit Part 2 | Attempt 1/10 for 10 pts. What should be the one-year forward rate according to interest rate parity (in dollars per euro)? 2+ decimals Submit