I dont understand which risk free rate to use to discount Spot rate and what to use to discount forward rate?
Is there any way logically to remember this?
Take a look at these two articles I wrote; they may help: http://financialexamhelp123.com/valuing-currency-forwards/, and http://financialexamhelp123.com/valuing-a-currency-forward-whence-came-that-formula/.