Order the answer to: Suppose the one-year forward $/€ exchange rate is $1.26 per

Academic Help business economics Order the answer to: Suppose the one-year forward $/€ exchange rate is $1.26 per

business economics

Order the answer to: Suppose the one-year forward $/€ exchange rate is $1.26 per

Question Suppose the one-year forward $/€ is $1.26 per euro and the spot is $1.2 per euro. What is the forward premium on euros (the forward discount on dollars)? What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?
Subject business economics
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