If the current euro spot rate is 1180euro and the 90-day


If the current $/euro spot rate is 1.180$/euro and the 90-day forward rate is 1.200$/euro, and the euro annual interest rate is 8%, what would you expect the dollar annual interest rate to be?

A) 3.7%
B) 8.2%
C) 9.6%
D) 14.9%

 

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Finance Basics: If the current euro spot rate is 1180euro and the 90-day
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