Q1. (a) 6 month Interest rate for British Pound Sterling is 7.45%, and that of...
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Finance
Q1.
(a) 6 month Interest rate for British Pound Sterling is 7.45%, and that of Singapore Dollar is 5.82%. Calculate the forward premium (British investors perspective) using (i) the regular formula, and the (ii) simplified formula (iii) six month forward rate, using standard formula. (3 marks)
(b) Derive the formula for IFE and explain the significance of ef (either greater than zero or less than zero) (5 marks)
Dont plagarism
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