Forex And Interest Rates Illustration 2
An Indian firm would like to invest 2 million Rupees in the US market (in US Dollars) for 6 months.
Spot USD INR 48.8840/48.8860
6-month forward USD INR 49.2340/49.2360
USA interest rates 4.25% – 4.50%
Calculate the net interest earned in Indian Rupees.
(Ans.: Rupees 57,040)
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