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?
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Real Estate Finance
Authors: John P. Wiedemer
8th Edition
0324142900, 9780324142907
