Financial Aspects of International Trade.

1. If a Euro buys 1.2US$, and US interest rate is 1%, and Euro rates are 2%, what should be the forward contract rate so that covered interest parity hold. 2. Assume I am a US investor. 1$=100 Yen, at spot market now. I borrow 1M$ from a bank at 1%, and will earn 5%...