Multiple Choice
The USD-EUR spot exchange rate is $1.50/€. If the two-year interest rate (in continuously-compounded and annualized terms) is 3% for the EUR and 2% for the USD, what is the two-year forward exchange rate ($/€) ?
A) 1.5457
B) 1.5303
C) 1.5151
D) 1.4703
Correct Answer:
Verified
Correct Answer:
Verified
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