Suppose the spot and six-month forward rates

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Suppose the spot and six-month forward rates on the Norwegian krone are Kr5.74 and Kr5.89, respectively. The annual risk-free rate in the United States is 3.54 percent, and the annual risk-free rate in Norway is 5.24 percent. The six-month forward rate on the Norwegian krone would have to be Kr /$ to prevent arbitrage. (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Reference no: EM131176823

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Suppose the spot and six-month forward rates : Suppose the spot and six-month forward rates on the Norwegian krone are Kr5.74 and Kr5.89, respectively. The annual risk-free rate in the United States is 3.54 percent, and the annual risk-free rate in Norway is 5.24 percent. The six-month forward ra..

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