Question
Assume the current U.S. dollar-British spot rate is 1.13/$. If the current nominal one-year interest rate in the U.S. is 12.8% and the comparable rate
Assume the current U.S. dollar-British spot rate is 1.13/$. If the current nominal one-year interest rate in the U.S. is 12.8% and the comparable rate in Britain is4.8%, what is the approximate forward exchange rate? *
1.226/ $
1.050/ $
1.184/ $
1.216/ $
1.336/ $
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Public Finance Administration
Authors: B. J. Reed, John W. Swain
2nd Edition
0803974051, 978-0803974050
