Question
Suppose the 180-day interest rate is 4% in the U.S. and 2% in the U.K. The spot rate is $1.40/. If Interest Rate Parity holds,
Suppose the 180-day interest rate is 4% in the U.S. and 2% in the U.K. The spot rate is $1.40/.
If Interest Rate Parity holds, what should the 180-day forward rate be (in $/)? Round your final answer to two decimal places.
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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
