garp13-p1-6

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, Can you please help me understand why the answer uses continuously compounded rates and not annual rate. In this question the answer is the same whether using continuosly or annual compounding, but may not always be the same. Question You are examining the exchange rate between the U.S...