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5. If the current exchange rate is $1.95/, the 1-year forward exchange rate is $2.05/, and the interest rate on British government bills is 7%
5. If the current exchange rate is $1.95/, the 1-year forward exchange rate is $2.05/, and the interest rate on British government bills is 7% per year.
What risk-free dollar-denominated return can be locked in by investing in the British bills? (Round your answer to 2 decimal places. Do not round intermediate calculations. Omit the "%" sign in your response.)
Risk-free dollar-denominated return _______%??
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