Business, 24.12.2020 16:30 maltbie1283

Today, the spot price of the EUR/USD exchange rate is $1.0796. The bid and ask quotes for the six-month EUR/USD forward contracts are, respectively, 73.56 and 75.68. Recall that quotes are reported in basis points, which is the common practice in FX market. According to the interest rate parity, what is the implied foreign interest rate differential

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Today, the spot price of the EUR/USD exchange rate is $1.0796. The bid and ask quotes for the six-mo...