Question
The spot Dollar-GBP sterling exchange rate is $1.80 per pound. The U.S. and U.K. 1-year simple interest rates are 4% and 2% respectively. The futures
The spot Dollar-GBP sterling exchange rate is $1.80 per pound. The U.S. and U.K. 1-year simple interest rates are 4% and 2% respectively. The futures price for delivery in one year is $1.36 per pound. What is the interest rate for the synthetic USD money market constructed using the foreign currency spot and futures markets?
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The Socionomic Theory Of Finance
Authors: Robert R. Prechter
1st Edition
0977611256, 978-0977611256
