Business, 06.12.2019 04:31 HtetPaing9281

Suppose the spot and six-month forward rates on the norwegian krone are kr 5.79 and kr 5.94, respectively. the annual risk-free rate in the united states is 3.59 percent, and the annual risk-free rate in norway is 5.29 percent. using the approximation, the six-month forward rate on the norwegian krone would have to be kr/$ to prevent arbitrage. (do not round intermediate calculations. round your answer to 4 decimal places, e. g., 32.1616.)

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Suppose the spot and six-month forward rates on the norwegian krone are kr 5.79 and kr 5.94, respect...