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Suppose the spot and six-month forward rates on the South Korean won are W1,304.88 and W1,315.02, respectively. The annual ri
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Answer #1

Forward rate as per Interest rate parity = Spot rate (1+Interest rate South Korea)/(1+Interest rate US)

= 1304.88(1+8%*6/12)/(1+5%*6/12)

= Won 1323.9758/Dollar

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