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The six-month forward rate between the British pound and the US dollar is $1.75 per pound. If six-month interest rates are 3% in the United
- The six-month forward rate between the British pound and the US dollar is $1.75 per pound. If six-month interest rates are 3% in the United States and 150 basis points higher in England, what is the current exchange rate?
- If the Canadian dollar to the U.S. dollar exchange rate is 1.28 CAD/USD and the British Pound to US dollar exchange rate is 0.62 GBP/USD, what must the Canadian dollar to British Pound exchange rate be?
- The NZ dollar to US dollar exchange rate is 1.36 NZD/USD, and the British Pound to US dollar exchange rate is 0.62 GBP/USD. If you find that the British Pound to New Zealand dollar exchange rate is 0.49 GBP/NZD, what would you do to earn a riskless profit?
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
