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If the current exchange rate is $1.35/, the 1-year forward exchange rate is $1.45/, and the interest rate on British government bills is 3% per
If the current exchange rate is $1.35/, the 1-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?
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