Calculate the annualized forward premium on the dollar

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Reference no: EM13723044

On Feb 29th, the dollar to euro spot rate was $1.1300/€ and the 3-month forward rate was $1.1500/€.

a) Calculate the annualized forward premium on the euro (against the dollar)

b) Calculate the annualized forward premium on the dollar (against the euro)

Reference no: EM13723044

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Calculate the annualized forward premium on the dollar : On Feb 29th, the dollar to euro spot rate was $1.1300/€ and the 3-month forward rate was $1.1500/€. Calculate the annualized forward premium on the euro (against the dollar) Calculate the annualized forward premium on the dollar (against the euro)

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