This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: = $2/ and the spot rate in t=1 of e 1 = $2.10/. What is the % appreciation/depreciation of the $? ANS:_________________ NAME___________________________ 4) Given the SR = $2/ , and FR 90 =$1.99/ and r US = 5% and r UK = 8%, a) Calculate r * (the home country currency rate of return). b) Would you see inward or outward interest arbitrage? 5) Given: r US = 7% and r FR = 12% and the spot rate e = $0.50/FF (French Franc), find the 1 year forward rate f 1 . 6) Given e = $2/, and i US = 4%, and i UK = 1%, where i is the respective rates of inflation. Find e 1 ....
View Full Document
This document was uploaded on 10/30/2011 for the course ECON 220:300:06 at Rutgers.
- Fall '11
- International Economics