If the interest rate in the United Kingdom is 8 percent, the interest rate in the United

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If the interest rate in the United Kingdom is 8 percent, the interest rate in the United States is 10 percent, the spot exchange rate is $1.35/£1, and interest rate parity holds, what must be the one-year forward exchange rate? (LG 9-7)

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Muhammad Salman Alvi

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