The spot rate exchange rate for Andromedan Pixels (ANP)is 3.00ANP/$.If the risk-free rate of return in Andromeda is 20% per annum while that in the U.S.is 3%,then what should be the 1-year forward rate for ANP/$?

Name: The spot rate exchange rate for Andromedan Pixels (ANP)is 3.00ANP/$.If the risk-free rate of return in Andromeda is 20% per annum while that in the U.S.is 3%,then what should be the 1-year forward rate for ANP/$?
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Quizplus · Accepted Answer

3.00 ´ (1.2/1.03)= 3.4951

The Spot Rate Exchange Rate for Andromedan Pixels (ANP)is 3