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If you invest $100,000 in the British pound market for six months with a forward cover when the interest rate and exchange rates are as

If you invest $100,000 in the British pound market for six months with a forward cover when the interest rate and exchange rates are as shown below, your annualized rate of return from the investment is 3%. Spot rate: $1.3050-60/; Ft+6 = $1.2975-90/; i = 4.20% a) True b) False Answer: b.

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