Question
The spot exchange rate is $1.50 per . The interest in the US is 1% per annum and the interest rate in UK is 3%
The spot exchange rate is $1.50 per . The interest in the US is 1% per annum and the interest rate in UK is 3% per annum. What is the one year ahead forward rate that will eliminate all arbitrage profit opportunities?
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Finance For A Better World
Authors: Henri-Claude De Bettignies, F. Lépineux
2009th Edition
0230551300, 978-0230551305
