Nominal interest rate in europe or in the united state

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1. If you believe that the euro will be higher in 6 months than it is today, would it be better to purchase the 6-month forward contract instead of the spot rate?

2. If the $/=C forward rate is at a forward discount relative to the spot rate (that is, the forward rate is lower than the spot rate), is the nominal interest rate in Europe or in the United States higher?

Reference no: EM131243321

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