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Assume the following: the current spot rate S$/ = 2.00 and the annual interest rates: ius = 4% and IUK = 8%. According to covered
Assume the following: the current spot rate S$/ = 2.00 and the annual interest rates: ius = 4% and IUK = 8%. According to covered interest parity, if an intern at a bank in U.K. sets the 90-day forward: 790 $/= 1.80, then: the intern has correctly set the forward rate. both U.S. and U.K. investment returns are equal. the British investment return exceeds the U.S. investment return. the U.S. investment return exceeds the British investment return
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