If the current spot exchange rate on the Euro is €0.7805/$ and the one year risk free rate for borrowing in dollars is 3% and 4% for borrowing in Euros,what should be the one year $/€ forward exchange rate?
A) 1.2689
B) 0.7881
C) 1.2936
D) 0.7730
Correct Answer:
Verified
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