Question
The sport and forward rate for British pound is $1.8 and $1.78, respectively. The interest rate in UK and US is 2% and 1%, respectively.
The sport and forward rate for British pound is $1.8 and $1.78, respectively. The interest rate in UK and US is 2% and 1%, respectively. If you have $15,000 to maximize your return with no foreign exchange risk, approximately how much more you make compare to the other option?
in the United States, $20
in the United Kingdom, 13
in the United States, $13
in the United Kingdom, 20
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
