Suppose we have been quoted the following spot and forward rates. Spot Exchange Rate Forward Exchange Rate
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Suppose we have been quoted the following spot and forward rates.
Spot Exchange Rate Forward Exchange Rate USD/GBP 0.55 GBP/USD 1.8094 The Libor rates for a single time period are quoted as L 1,USD t0 = 3%
and L 1,GBP t0 = 3.5%. Let us assume that δ = 360/360. Please calculate the spot exchange rate for GBP/USD and the forward exchange rate for USD/GBP.
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