If the interest rate per annum of mark is 5 and that of dollar is 2 The spot rate is $1 DM1604016080 the dollar 3 month forward premium against mark is 20 approximately 40 points
If the interest rate per annum of mark is 5% and that of dollar is 2%. The spot rate is $1 = DM1.6040-1.6080, the dollar 3-month forward premium against mark is 20 approximately 40 points. Please answer the following question: 3-months forward rate; If there is no transaction cost and capital control, then does there exist arbitrage chance without risks ? If there does, how to operate? To calculate the net profit with $1000.
Apr 03 2020 View more View Less
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