Question
suppose the currency exchange rate between the united states and the united kingdom is $1.76/E. the continuously compounded interest rate in the U.S is 7%,
suppose the currency exchange rate between the united states and the united kingdom is $1.76/E. the continuously compounded interest rate in the U.S is 7%, while the continuously compounded british pound- denominated interest rate is 9%. What is the price of a 12-month prepaid forward contract on the british pound?
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Financial Accounting Tools For Business Decision-Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Canadian Edition
0470833378, 978-0470833377
