Kizspy | Question: 22 (Choose 1 answer)
Suppose you observe a spot exchange rate of $1.50/€. If interest rates are 3% APR in the U.S. and 5% APR in the euro zone, what is the no-arbitrage 1-year forward rate?
Α. €1.5291/$
Β. $1.5291/€
C. €1.4714/$
D. $1.4714/€
