Find the Forward Rate of Foreign Currency Y If the Spot

question 39

Multiple Choice

Find the forward rate of foreign currency Y if the spot rate is $4.50,the domestic interest rate is 6 percent,the foreign interest rate is 7 percent,and the forward contract is for nine months.(The interest rates are continuously compounded. )

• A)$4.458
• B)$5.104
• C)$4.468
• D)$4.532
• E)none of the above

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