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Assume that the current spot exchange ra...

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题目

Assume that the current spot exchange rate is 0.8950 USD per 1 EUR. An American bank pays 3.5 percent annual interest rate for a dollar deposit and a European bank pays 2.75 percent annual interest rate for a EUR deposit. Both rates are compounded annually. If the interest-rate parity theory holds true, calculate the no arbitrage forward exchange rate for one year from now:

选项

A.0.9015

B.0.8990

C.0.8975

D.0.8950

答案

A

解析

The interest rate parity theorem can be used to find the equilibrium forward EUR/USD rate.「huixue_img/importSubject/1564169523966382080.jpeg」