Business, 30.11.2019 07:31, karinagonzale80

Assume that the dollar-euro exchange rate (e$/€) = 1.1, the u. s. interest rate is 4% and the euro interest rate is 1%, and that covered interest parity holds. a. how many euros will an american investor with $1,000 have a year from now? b. what is the forward exchange rate (f$/€) ?

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Assume that the dollar-euro exchange rate (e$/€) = 1.1, the u. s. interest rate is 4% and the euro i...