The euro will rise or decline in value in the future

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Reference no: EM131931845

Suppose the (riskless) rate on Euro-denominated T-bills is lower than the U.S. Treasury bill rate. If the spot rate S is quoted $ per Euro, would you expect that the forward rate F (also $/Euro) will be higher or lower than S? Explain. Does this indicate whether the Euro will rise or decline in value in the future? Explain. * Note: This is the second time i post the question because first time someone answered it as if i say Euro-denominated is "higher" than US treasury bill..... the question as you see said "lower"

Reference no: EM131931845

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