Forward Rate

AFM

Sir, in the first part of the question, they asked "At which forward rate of 2 year there will be no opportunity for arbitrage", so we have calculated the Theoretical rate for 2 years, but I don't understand how we justified that at this Forward rate, there is no Opportunity for arbitrage. [Video Time Stamp: 06:16] Video Details ------------- Advanced Financial Management - AFM Foreign Exchange Exposure and Risk Management #74. Illustration # 29 - Continuous Compounding

Murali Thripuraboina

CA Final

★ 3K+

16-Nov-25 20:00

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Answers (1)

Forward rate

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Sriram Somayajula

Admin

16-Nov-25 21:37