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3. At the time of this posting, the spot rate for the British pound is Es/ 1.3845 (using textbook notation), or GPB/USD = 1.3845 (using
3. At the time of this posting, the spot rate for the British pound is Es/ 1.3845 (using textbook notation), or GPB/USD = 1.3845 (using conventional currency-pair notation). Suppose that the 1-year interest rate on dollar deposits is 1% and the 1-year interest rate on pound deposits is 0%. What is the 1-year forward value of the pound (Fs/e)? 3. At the time of this posting, the spot rate for the British pound is Es/ 1.3845 (using textbook notation), or GPB/USD = 1.3845 (using conventional currency-pair notation). Suppose that the 1-year interest rate on dollar deposits is 1% and the 1-year interest rate on pound deposits is 0%. What is the 1-year forward value of the pound (Fs/e)
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