Compute the six-month forward rate on the norwegian krone

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Suppose the spot and six-month forward rates on the Norwegian krone are Kr5.70 and Kr5.90, respectively. The annual risk-free rate in Canada is 4 percent, and the annual risk-free rate in Norway is 6 percent.

Problem 1: Compute the six-month forward rate on the Norwegian krone would have to be Kr / $ to prevent arbitrage

Reference no: EM132864808

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