Question
Suppose the interest rate in the U.K. is 4 percent for 90 days, the current spot rate is $2.00/, and the 90-day forward rate is
Suppose the interest rate in the U.K. is 4 percent for 90 days, the current spot rate is $2.00/, and the 90-day forward rate is $1.96/. If the covered interest rate differential is about zero, then the interest rate in the U.S. for 90 days is
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Macroeconomics
Authors: Charles I. Jones
4th Edition
393603767, 393603768, 9780393616125 , 978-0393603767
