Mathematics · Financial Risk Management
Black Co, whose home currency is the dollar, has a spot exchange rate of €2.349 per $1. The risk-free interest rate on the euro is 5.0% per year and on the dollar is 2.2% per year. According to Interest Rate Parity Theory, which of the following would be the 12-month forward exchange rate?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1€2.172 per $1
- 2€2.286 per $1
- 3€2.315 per $1
- 4€2.413 per $1✓
Correct answer
€2.413 per $1
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Mathematics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Financial Risk Management MCQs →Want more practice questions on Financial Risk Management?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Mathematics · Financial Risk Management