The US interest rate is 0.75%. The US inflation rate is 1.30%. The expected future spot...

Question

Question

The US interest rate is 0.75%.

The US inflation rate is 1.30%.

The expected future spot rate of the Turkish Lira is $0.1445/TRY.

Calculate the expected forward rate of the Lira.

Answer 1

Answer #1

Aus :- interest Eate is = 0.75%. inflation Eate = 1.304. future forward spot valle - $0.1445 Rate - 9 forward Rate - Spot Eat

Answer 2

Similar Homework Help Questions

The US interest rate is 0.75%. The British interest rate is 0.25%. The spot rate is...

The US interest rate is 0.75%. The British interest rate is 0.25%. The spot rate is $1.1639/£. Calculate the forward rate assuming interest rate parity holds.
Q3) Currently, at Spot market, 1 Swiss Frank =5.9 Turkish Lira Assuming the Expected Inflation for...

Q3) Currently, at Spot market, 1 Swiss Frank =5.9 Turkish Lira Assuming the Expected Inflation for Turkey 8.5% and Inflation rate for Switzerland as 2.5%, calculate how many TL you need to buy 1 Swiss Frank, 1 year later.
Suppose the annualized interest rate on 180-day Russian Ruble deposits is 4.3125 (bid) - 4.4375 (ask)....

Suppose the annualized interest rate on 180-day Russian Ruble deposits is 4.3125 (bid) - 4.4375 (ask). At the same time, annualized interest rate on 180-day interest rate on 180-day Turkish Lira deposits is 9.125-9.375. Spot and 180-day forward quotes (TRY per RUB) are 0.07915-0.08820 (and 0.07450-0.07950, respectively. Find forward rate such that there is NO arbitrage? 180-day Russian Ruble bank rates 180-day Turkish Lira bank rates Spot (TRY/RUB) Forward (TRY/RUB) BID 4.3125 9.125 0.07915 0.07450 ASK 4.4375 9.375 0.08820 ?

The spot rate of euro against US$ is $1.4250/€. The rate of inflation in the U.S....

The spot rate of euro against US$ is $1.4250/€. The rate of inflation in the U.S. and Euro area are expected to be 3% and 2.5% respectively. Based on the theory of Relative PPP, the expected spot exchange rate of euro against the US$ for next year is ____________.
1. Congratulations! You have just started your first day as an intern at the International Monetary Fund. The research...

1. Congratulations! You have just started your first day as an intern at the International Monetary Fund. The research department has just provided you with the following information about the US dollar/Turkish lira (₺) exchange rate: Today’s dollar/Turkish lira spot exchange rate = 0.15 Today’s interest rate on US dollar deposits is = 2%. Today’s interest rate on Turkish lira deposits is = 22%. The IMF estimate of the expected dollar/Turkish lira exchange rate in one year is = 0.12 Does uncovered interest...
Assume the spot rate is $1.30/GBP. How will this rate adjust according to PPP, if we...

Assume the spot rate is $1.30/GBP. How will this rate adjust according to PPP, if we assume UK has an inflation of 3% and US has an inflation of 3.5%?

If the spot rate S/£ is $1.3050 and the US interest rate is 3% and the...

If the spot rate S/£ is $1.3050 and the US interest rate is 3% and the UK interest rate is 4%, then one year equilibrium forward rate is
if the spot rate for the yen is .0085 yen is equal to 1 us $,...

if the spot rate for the yen is .0085 yen is equal to 1 us $, and the annual interest rate on fixed rate one year deposits of yen is 0.2 % and for US $ is 1.5 % what is nine month forward rate for one dollar in terms of yen? assuming the same interest rates, what is the 18 month forward rate for yen in US $ ? is this an indirect or a direct rate? if the...
a) Calculate the expected spot rate in 6 months assuming that the interest rate parity between the two countries holds....

a) Calculate the expected spot rate in 6 months assuming that the interest rate parity between the two countries holds. b) Calculate the expected value of the sales proceeds in NZD using the expected spot rate computed in (a) above. c) Calculate and value of the proceeds from the sale if the company enters into a forward rate agreement. d) Explain and calculate the net proceeds receivable by Brian's company if money market hedge is used.(Show workings) e) Based on...

The annual inflation rate in the US is expected to be 2.93 percent and the annual...

The annual inflation rate in the US is expected to be 2.93 percent and the annual inflation rate in Poland is expected to be 4.31 percent. The current spot rate between the zloty and dollar is 24.1052/$. Assuming relative purchasing power parity holds, what will the exchange rate be in four years? Multiple Choice 24.2775/$ 24.21931$ 24.3365/$ Z3 883215 23.9376/5