Given:
Spot USD CAD 1.1000/1.1100
CAD deposit rate 4.75%
USD deposit rate 4.00%
3 months forward (swap points) 20/30
Calculate arbitrage free lending rates for the two currencies.
(Ans.: Interest Rate in USD 5.09% & CAD 4.02%)
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Given:
Spot USD CAD 1.1000/1.1100
CAD deposit rate 4.75%
USD deposit rate 4.00%
3 months forward (swap points) 20/30
Calculate arbitrage free lending rates for the two currencies.
(Ans.: Interest Rate in USD 5.09% & CAD 4.02%)
Â
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