What must the one-year forward rate be to prevent arbitrage

Reference no: EM131424187

Interest Rate Parity Go to the Financial Times site at www.ft.com. Find the current exchange rate between the U.S. dollar and the euro. Find the U.S. dollar LIBOR and the euro LIBOR interest rates. What must the one-year forward rate be to prevent arbitrage? What principle are you relying on in your answer?

Reference no: EM131424187

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