The current indirect rate is 100,the interest rate in the foreign country is 7%,the interest rate in the home country is 5%.What is the forward indirect rate if t = 3?

Question

Quizplus · Accepted Answer

The forward rate can be calculated using the formula: Forward Rate = Spot Rate * (1 + Interest Rate of Foreign Country) / (1 + Interest Rate of Home Country). Here, Forward Rate = 100 * (1 + 0.07)^3 / (1 + 0.05)^3 = 105.82.

The Current Indirect Rate Is 100,the Interest Rate in the Foreign