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)

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ISE Financial Markets And Institutions

ISBN: 9781265561437

8th International Edition

Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts

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Question Posted: Jul 25, 2024 10:00 AM

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

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ISE Financial Markets And Institutions

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