FMInterest Parity formula?

I think you've answered your own question! IC is the interest rate of the country C do if the interest rate in C was 5% and the interest rate in B was 6% then it would be F=Sx(1+.05)/(1+0.06). You wont actually know what to put in as the interest rates unless it tells you in the exam! I hope I've answered your question.

i think u can apply this
F= S(c/b)x(1+ic)/(1+ib)
For example BPP page 331
F=S($/Dinar)x(1+i$)/(1+iDinar)= 5.467X1.14/1.09= 5.7178 ($/D)
OR
F=S(Dinar/$)x (1+iDinar)/(1+i$)=1/5.467x1.09/1.14=0.174893 (D/$) <=> 5.7178 $/Dinar

Pls tell me how to identify the country corresponding to the interst rate (iC, iB)? Ths in advance!

please once again confirm me, C stand for home country and B stand for foreign country?

@handsome said:
please once again confirm me, C stand for home country and B stand for foreign country?

No the other way round, B is Base country i.e. Home country

HI THERE, HOW ABOUT THE FISHER FORMULA FOR THE FOREX RATES