Given spot rate is 7
According to interest rate parity therom the currency with higher interest rate will sell in discount in forward market to cancel the arbitrage opportunity
Interest rate in Turkey is 10%
Interest in uk is 3%
Forward price = spot price (1+rh)/(1+rf)
rh is home interest rate
rf is foreign interest rate
Forward price = 7(1.1)/(1.03)
= 7.4757
Estimated spot rate 1 year from now is = 7.4757
Amount to be received is 2 million
Amount to be received in pounds is
= 2/7.4757 = 0.2675 mn
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