Indian rupee forward contracts. The Indian rupee (INR) is currently trading at INR 50 = US$1. With 90-day Indian-rupee and U.S. dollar treasury bills currently yielding 10 percent and 2 percent per...

Indian rupee forward contracts. The Indian rupee (INR) is currently trading at INR 50 = US$1. With 90-day Indian-rupee and U.S. dollar treasury bills currently yielding 10 percent and 2 percent per annum, respectively, what would be the forward INR price of US$1? What assumptions are you making with respect to the credit rating of either government securities?

Please explain how the INR to USD is converted with the solution being:

To convert INR to USD=150.99502488 INR= 0.0196097561 USD

Answer -

INR 0.01970.