Question
Assume the spot price of the British pound is currently $2.4. If the risk-free interest rate on 1-year government bonds is 3.1% in the United
Assume the spot price of the British pound is currently $2.4. If the risk-free interest rate on 1-year government bonds is 3.1% in the United States and 5.6% in the United Kingdom, what must be the forward price of the pound for delivery one year from now? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
