What would you expect dollar annual interest rate to be

Reference no: EM13271555

If the current $/euro spot rate is 1.180$/euro and the 90-day forward rate is 1.200$/euro, and the euro annual interest rate is 8%, what would you expect the dollar annual interest rate to be?

A) 3.7%
B) 8.2%
C) 9.6%
D) 14.9%

Reference no: EM13271555

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