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The formula for interest parity is: i_$ - i_fc = (F-E)/E Say i_US = 15% i_UK = 10% The current spot rate is $2/L What
The formula for interest parity is: i_$ - i_fc = (F-E)/E
Say i_US = 15%
i_UK = 10%
The current spot rate is $2/L
What is the implied forward rate? What if the value is different than this?
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