One form of the interest rate parity equation appears as 1 + rUSt = (1/St) (1

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One form of the interest rate parity equation appears as 1 + rUSt =

(1/St) × (1 + rUKt) × Ft where both the spot and forward rates are expressed in terms of dollars for pounds or direct exchange rates. How would the equation be written if the exchange rates were indirect—

that is, pounds for dollars? (LG 9-7) LO.1

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Financial Markets And Institutions

ISBN: 9781259919718

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 25, 2024 06:07 AM

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One form of the interest rate parity equation appears as 1 + rUSt = (1/St) (1

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Financial Markets And Institutions

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