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Looking at the current currency market as of January 2019, we can apply the forward foreign exchange rate formula to figure out what the GBP/USD
Looking at the current currency market as of January 2019, we can apply the forward foreign exchange rate formula to figure out what the GBP/USD rate should be. The current spot rate for the pair is 1.32. The interest rate - using the one-yearLIBOR rate- for the U.K. is 1.17% and 3.029% for the U.S. The domestic currency is the British pound, what is the the forward rate?
May I know the detailed steps to obtain the forward rate and the solution?
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