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Explain why a risk - neutral investor would be indifferent between a one - year U . S . dollar investment in a risk -
Explain why a riskneutral investor would be indifferent between a oneyear US dollar investment in a riskfree security at and a oneyear British pound investment at if the investor expected the $ spot exchange rate one year later to equal the forward rate as determined by the IRPT. In your explanation, assume the current spot exchange rate is $BP
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