In: Finance
Suppose that the one-year interest rate is 4.30% in Italy, the spot exchange rate is $1.5550/€1.00, and the one-year forward exchange rate is $1.5979/€1.00. Based on interest rate parity, what must the one-year interest rate be in the United States?
Question 19 options:
1.832% |
|
1.935% |
|
1.500% |
|
7.177% |
|
1.478% |
|
2.685% |