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Suppose that the spot rate for British pounds is $1.76. The USA risk-free rate is 1.1% and the UK risk-free rate is 2.2%; both are

Suppose that the spot rate for British pounds is $1.76. The USA risk-free rate is 1.1% and the UK risk-free rate is 2.2%; both are compounded annually. One-year forward contracts are currently quoted at a rate of $1.75. 7.1 Determine the forward price

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