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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Suppose the spot and six-month forward rates on the South Korean won are SKW 1,304.93 and SKW 1,314.92, respectively. The annual risk-free rate in the United States is 5 percent, and the annual risk-free rate in South Korea is 7 percent. (Enter your answer as directed, but do not round intermediate calculations.)
| Required: |
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What must the six-month forward rate be to prevent arbitrage? (Do not include the South Korean won sign (SKW). Round your answer to 4 decimal places (e.g., 32.1616).) |
| Â |
| Â Â Forward rate | SKWÂ Â Â |
Â
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