- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
It didn’t mention should we depends on interest parity or purchasing power parity, according to the standard answer we should use the equation of interest parity to solve it. Here is my guess: as it is the six-month forward exchange rate, it is an exchange rate in short-term instead of a long-term one (where purchasing power parity should be used at) so we should use the equation of interest parity.
Is this right? Please let me know, as usual thank you so much sir!
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.