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What is the best estimate of the 3 month forward rate

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W wants to hedge this by using a Forward contract. Suppose W's currency is the W and the H's currency is the H. The current W/H spot rate is 0.6%. The interest rate in W's country is 4.9% and in the H's country is 1.78%. The inflation rate in W's country is 2.6% and in the H's country is 4.27%. What is the best estimate of the 3 month forward rate?

Reference no: EM132509177

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