Business Finance Homework Help

You
know the following. The interest rate in the $ is 10% and in the euro it is
6%.  If the ER is euro / $1 (meaning 1
euro for 1 dollar.)  

Use formula

^$P (1 + i_$)
₌ ^$P (^€/$ S) (1+ i_€)(1/ ^€/$
F) or

(i_$
– i_€)/(1 + i_€) = (^€/$S – ^€/$ F)/
^€/$ F (Euro Terms) or

(i_$
– i_€)/(1 + i_€) = (^$/€ F – ^$/€ S )/
^$/€S (Dollar Terms)