Foreign Exchange Flashcards
1
Q
What is the formula for Covered Interest Rate Parity?
A
F(t,T)=S(t)*[(1+R1)^T-1 / (1+R2)^T-t]
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What is the formula for Covered Interest Rate Parity?
F(t,T)=S(t)*[(1+R1)^T-1 / (1+R2)^T-t]