FUND. OF FINANCIAL MGMT CONCISE (LL)
FUND. OF FINANCIAL MGMT CONCISE (LL)
9th Edition
ISBN: 9781337539319
Author: Brigham
Publisher: CENGAGE L
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Chapter 17, Problem 3P
Summary Introduction

To determine: The 6-month forward exchange rate.

Introduction:

Interest Rate Parity:

It refers to that theory which indicates the difference of interest rates provided by two different countries to be the same as the difference of forward exchange rate and spot exchange rate.

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