header bg

Scan QR code or get instant email to install app


The three-month interest rate in the currency MNO is 4% and the three-month interest rate for the currency PQR is 5%. Based only on this information, the three-month forward MNO/PQR exchange rate:

A is less than spot MNO/PQR.

Based on the no-arbitrage relationship between spot rates, forward rates, and interest rates, if the interest rate for the base currency is greater than the interest rate for the price currency, the forward exchange rate is less than the spot exchange rate.

Related Information


Leave a Reply

Your email address will not be published. Required fields are marked *