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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 $ the oneyear forward exchange rate is $ and the interest rate on British government bills is per year, what riskfree dollardenominated return can be locked in by investing in the British bills?
If you invest $ in the British bills of Problem how can you lock in your dollardenominated return?
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