The Risk Free Rate in the US Is 2

question 31

Multiple Choice

The risk free rate in the US is 2.5% and the risk free rate in Europe is 3.2%.If the spot rate of dollars per euro is 1.32,what is the likely forward rate in terms of dollars per euro?

• A) 1.30
• B) 1.31
• C) 1.32
• D) 1.33

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Definitions:

Schedule

A plan for carrying out a process or procedure, giving lists of intended events and times.

Unadjusted Cost

The original cost of an asset or operation before any adjustments, such as depreciation or amortization, have been applied.

Goods Sold

The total quantity of goods a company has sold to its customers during a specific period, typically reported in sales revenue figures.

Cost of Goods Available

The total cost of all goods a company has available for sale at the end of a period, including both beginning inventory and goods produced or purchased during the period.