Please do not publish the question.

Kindly show the steps on how to solve it,

B G H E e. The rate of return on 90-day U.S. treasury securities is 3.9% and the rate of return on 90-day U.K. risk-free securities is 5.0%. Using the spot exchange information from Table 17-1, estimate the 90-day forward exchange rate. Using knowledge of interest rate parity, the following problem is set up. = 1.3071 3.9% 5.0% 0.25 = Spot exchange rate (direct quotation) = Home nominal interest rate = Foreign nominal interest rate = Time to maturity on securities (in years) = Home periodic interest rate = Foreign periodic interest rate = 90 days forward exchange rate = ft / (spot exchange rate) ft ft [(1+rh) / (1+rf)] (spot exchange rate) ((1+rh) / (1+rf)]