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The current spot exchange rate is 0.6409 GBP/USD. The 9-month forward exchange rate in the market is 0.6318 GBP/USD. Based on this, what is the
The current spot exchange rate is 0.6409 GBP/USD. The 9-month forward exchange rate in the market is 0.6318 GBP/USD. Based on this, what is the difference in the current interest interest rate in the United States (US) and the current interest rate in the United Kingdom (UK)? That is, what is Rys - RK? Assume that the interest rates are expressed as continuously compounded per annum. The abbreviation USD stands for US Dollar, and GBP stands for Great Britain Pound
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