Forex And Interest Rates Illustration 2


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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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