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3. Covered International Investment What is covered interest parity? Example: Suppose that Britain and U.S. interest rates are SUK=0.04 and ius =0.03 respectively for 90

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3. Covered International Investment What is covered interest parity? Example: Suppose that Britain and U.S. interest rates are SUK=0.04 and ius =0.03 respectively for 90 days, and that the spot exchange rates are $2.00/, what is the forward exchange rate if the covered interest parity exist

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