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lord [1]
3 years ago
12

Suppose that the dollar-mark 6 months forward rate is $1.275/Mark. Suppose that the dollar-mark forward premium is 5%. Calculate

the spot rate, $1=Mark_______ work to 4 decimal places.
Business
1 answer:
Vladimir [108]3 years ago
3 0

Answer:

$1 = 0.8039 Mark

Explanation:

Forward Rate = Spot rate * (1 +rate*180/360)

1.275 = Spot rate * (1 + 0.05*180/360)

Spot rate = $1.2439/Mark

Now we are asked rate per dollar

$1 = (1/1.2439)Mark

$1 = 0.8039 Mark

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Which of the following would be a closed question?
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Answer:

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4 years ago
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AleksandrR [38]

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