Which equation is used to define the futures price?
A) $\frac { F ( \$ / € ) } { S ( \$ / € ) }$ = $\frac { 1 + i_{\$} } { 1 + i _{\€}}$
B) $\frac { F ( \$ / € ) } { S ( \$ / € ) }$ = $\frac { 1 + i } { 1 + i }$
C) $\frac { F ( \$ / € ) - S ( \$ / € ) } { S ( \$ / € ) }$ = $\frac { 1 + i_{\$} } { 1 + i_{€} }$
D)F($ / €)- S($ / €)= $\ddot { l } _ { S }$ - $i _ { \epsilon }$

Question

Quizplus · Accepted Answer

The equation $\frac { F ( \$ / € ) } { S ( \$ / € ) }$ = $\frac { 1 + i_{\$} } { 1 + i _{\€}}$ is used to define the futures price. This equation shows the relationship between the spot price (S) and futures price (F), as well as the interest rates in the two currencies ($i_{\$}$ and $i_{€}$).

Which Equation Is Used to Define the Futures Price? A) F($/€)S($/€)\frac { F ( \$ / € ) } { S ( \$ / € ) }S($/€)F($/€)​

Which Equation Is Used to Define the Futures Price?
A) $\frac { F ( \$ / € ) } { S ( \$ / € ) }$