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Management · Q863

International Finance and Treasury

Graduate and Post Graduate · Management · question 863

Q863

If rf and rd are the interest rates of a foreign country and domestic country, respectively and if S_F/D and S_F/D are spot exchange rate and forward exchange rate between the countries F and D, the interest rate parity is indicated by

If rf and rd are the interest rates of a foreign country and domestic country, respectively and if and are spot exchange rate and forward exchange rate between the countries F and D, the interest rate parity is indicated by
A.
B.
C.
Answer
D.
None of these

Answer: Option C

Solution

Answer: Option C
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