Question
In July 2016, the one year interest rate is 12% on British pounds and 9% on U.S. dollars. If the current exchange rate is $1.63:1,
In July 2016, the one year interest rate is 12% on British pounds and 9% on U.S. dollars. If the current exchange rate is $1.63:1, what is the expected future exchange rate in three year?
Is it 1.63*(1.09/1.12)^3 = USD1.5025/GBP?
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Real Estate Investment Strategies Structures Decisions
Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
