Question
Suppose you have $10,000 to invest for one year. You plan to make a trip to London one year after. The spot exchange rate is
Suppose you have $10,000 to invest for one year. You plan to make a trip to London one year after. The spot exchange rate is $1.25 per . The U.S. interest rate is 2% and the U.K. interest rate is 3%. What is the one-year forward exchange rate (in terms of the U.S. dollar per British pound)?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
