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$ interest rate is 50%. Euro interest rate is 10%. Spot exchange rate is 10$/euro. Forward exchange rate is F $/euro. What is

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Answer #1

13.64

(S = 10$/euro
Rf = 50% = 0.5
Rd = 10% = 0.1

F = S(1+Rf)/(1+Rd) = 10(1+0.5)/(1+0.1) = 10(1.5)/(1.1) = 15/1.1 = 13.64)

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