Suppose the spot and six-month forward rates on the South Korean won are SKW 1,304.93 and SKW 1,314.92, respectively. The annual risk-free rate in the United States is 5 percent, and the annual risk-free rate in South Korea is 7 percent. (Enter your answer as directed, but do not round intermediate calculations.)

Required:

What must the six-month forward rate be to prevent arbitrage? (Do not include the South Korean won sign (SKW). Round your answer to 4 decimal places (e.g., 32.1616).)

Forward rate

SKW