Forex And Interest Rates Illustration 5


0

Forex And Interest Rates Illustration 5

From the following data decide on the best alternative for borrowing INR 4 million for a temporary period of 6 months on a risk-free basis. Ignore transaction costs.

Currency

Spot

6 month forward

Interest Rates

INR

5.75% – 6.00%

USD INR

46.65/46.66

46.96/47.00

4.25% – 4.50%

EUR INR

64.00/64.10

64.28/64.32

4.75% -5.00%

GBP INR

95.25/95.30

95.36/95.46

5.25% – 5.50%

(Ans.: 120000, 120686, 120500, 119061. Borrow in GBP)


Like it? Share with your friends!

0
Score Tutorial
S’COrE Education is a professional coaching institute to coach for new generation courses. S’COrE has highly experienced faculty with enormous experience and achievement in teaching and industry. We teach each subject in such a manner that even complicated subject feels simple. This helps student to S’COrE-the-Max. Since 1998 S’COrE had university toppers accross courses and subjects. Once you are our student you will also believe S’COrE - the - Best !!

0 Comments

Facebook comments: