hi David
Please can you explain when do we use the following formulas for interest rate parity :
Ft =S0 * e(r-rf)T and
Forward = Spot x (1+domestic interest rate)/(1+foreign interest rate)
I am very confused as some questions use the first and some use the second and the results are...
Hi david,
I read on your study notes in the financial markets and products on hull regarding interest rates, page 53 whereby we are asked to calculate the six month semi annial forward rate starting in 1.5 years.
Please can you explain how the calculation formula?
Many thanks!
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