Currency forward price

Can anyone confirm this formula for me… seems backwards and i dont have my book here with me… Forward price = S * (1*Rdc)^T/(1+Rfc)^T Seems like all other currency things are FC/DC, not the other way around…

F = S * (1+Rdc)^t/(1+Rfc)^t I think you meant to use “+” instead of “*” in the numerator term. But yeah, that’s right, as long as spot is expressed as DC/FC. Just remember to match like interest rates with like terms in the exchange rate. i.e. if $ is numerator and euro is denominator, the interest rate in the numerator should be the U.S rate, and in the denominator should be euro rate.

yep i did… thanks… i saw CPK use it earlier but didnt want to question the master… but it started to get to me and i was second guessing him, my mistake.