suppose the domestic currency is the kenya shilling and the foreign currency is the US dollar . let the spot exchange rate be sh85 per $ the kenyan interest rat
Mathématiques
mercyakinyima877
Question
suppose the domestic currency is the kenya shilling and the foreign currency is the US dollar . let the spot exchange rate be sh85 per $ the kenyan interest rate be 10% and the US interest rate be 4%. these rates are continuously compounded and assumed to be fixed over the life of the contract. calculate the forward price of a six month contract