The question is calculating the arbirtrage-free 224 day forward exchange rate. My question is, in the solution they say the UK interest rate is the domestic rate and the euro rate is the foreign currency rate. But if the company is based in Germany isn’t the Euro the domestic rate and so shouldn’t it be in the numerator for the calculation?
don’t worry, figured it out. The FX rate they give is in GBP so the UK interest rate is the domestic rate.