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If the current exchange rate is $ 1 . 3 5 , the one - year forward exchange rate is $ 1 . 4 5

If the current exchange rate is $1.35, the one-year forward exchange rate is $1.45, and the interest rate on British government bills is 3% per year, what risk-free dollar-denominated return can be locked in by investing in the British bills?
??O19-2
If you invest $10,000 in the British bills of Problem 7, how can you lock in your dollar-denominated return?
(LO19-2)
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