medium · CFA Level I econ
Oakridge Capital notices that the 270-day forward rate for EUR/USD is 1.1200. The spot rate is 1.1000. If the price currency (EUR) interest rate is 6.0%, what is the implied interest rate for the base currency (USD)? (Assume a 360-day year and simple interest).
- 2.63%
- 8.53%
- 3.51%
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