If interest rates are 5 apr in the us and 3 apr in the euro, Financial Management

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If interest rates are 5 apr in the us and 3 apr in the euro

Suppose you observe a spot exchange rate of $1.50/€. If interest rates are 5% APR in the U.S. and 3% APR in the euro zone, what is the no-arbitrage 1-year forward rate?

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Financial Management: If interest rates are 5 apr in the us and 3 apr in the euro

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Financial Management: If interest rates are 5 apr in the us and 3 apr in the euro

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