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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Finance For IT Decision Makers
Authors: Michael Blackstaff
1st Edition
3540762329, 978-3540762324
