Suppose the one-year forward $/euro exchange rate is $1.2 per euro and the spot exchange rate is $1.1 per euro. What is the forward premium on euros (the forward discount on dollars) ? The forward premium on euros is nothing percent. (Give your answer as a percentage with one decimal and do not forget a negative sign, if appropriate. ) Given the above information, what is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no political risk) ? The difference between the dollar interest rate and the euro interest rate Upper R Subscript $ Baseline minus Upper R Subscript euro Baseline equals nothing percent. (Give your answer as a percentage with one decimal and do not forget a negative sign, if appropriate. )

Question

Business

Adrian

7 February, 23:00

Suppose the one-year forward $/euro exchange rate is $1.2 per euro and the spot exchange rate is $1.1 per euro. What is the forward premium on euros (the forward discount on dollars) ? The forward premium on euros is nothing percent. (Give your answer as a percentage with one decimal and do not forget a negative sign, if appropriate. ) Given the above information, what is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no political risk) ? The difference between the dollar interest rate and the euro interest rate Upper R Subscript $ Baseline minus Upper R Subscript euro Baseline equals nothing percent. (Give your answer as a percentage with one decimal and do not forget a negative sign, if appropriate. )

+1

Answers (1)

Know the Answer?

Gustavo Chandler · Answer 1

You want to learn about the Ferris-wheel riding habits of people, so you ask those leaving a theme park, "How many times did you ride the Ferris wheel today?"

Is the question a statistical question? Explain why or why not yomahama