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Assume that the actual forward rate on a 1 Year USD/GBP forward contract is: F1USD/GBP = 1.18. Today's USD/GBP spot rate is: X0USD/GBP = 1.24.
Assume that the actual forward rate on a 1 Year USD/GBP forward contract is: F1USD/GBP = 1.18. Today's USD/GBP spot rate is: X0USD/GBP = 1.24. The 1-Year interest rates for GBP is 6%; the USD 1-Year interest rate is 4%.
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The synthetic forward rate is the rate that would equalize the return b...
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
