Difference between forward rate and spot rate

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Reference no: EM131517588

Please provide me this information for Pakistan, and provide references:

Forward Rate and Interest Rate Parity 1) Does forward market exist on your currency against US Dollar and/or other major currencies? Find the one year forward rate at the beginning of year 2014 and 2015.

2) Compute the difference between forward rate and spot rate. Is it a premium or discount at the beginning of year 2014 and 2015?

3) Use above results and information from question 1 to check if interest rate parity holds for year 2014 and 2015.

Reference no: EM131517588

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