Business, 14.04.2020 15:56, gjvyverman

Suppose the one-year forward $/€ exchange rate is $1.26 per euro and the spot exchange rate is $1.20 per euro. What is the forward premium on euros (the forward discount on dollars)? What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?

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Suppose the one-year forward $/€ exchange rate is $1.26 per euro and the spot exchange rate is $1.20...