The spot
exchange rate today for the number of Swedish Krona (SEK) per Euro (EUR) is
5.20 SEK = 1 EUR. The annualized Swedish LIBOR interest rate (for the three-month
period starting today) is 4%. The annualized Euro LIBOR interest rate (for the three-month
period starting today) is 8%. Assume three months is precisely .25 years.
What
is the three-month forward rate for the Swedish Krona (SEK) per Euro (EUR) in
four decimal places?
