Question
You have 1,000,000 to invest for 3 months take 3 months to be exactly 0.25 of a year. Current spot rate of pound = $1.50
You have 1,000,000 to invest for 3 months take 3 months to be exactly 0.25 of a year.
Current spot rate of pound = $1.50
90 day forward rate of pound = $1.45
3 month deposit rate in U.S. = 12% pa
3 month deposit rate in UK = 20% pa
If you utilise the spot and forward markets to invest in the USA, what will be your US return compared to your UK return?
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Financial Dimensions Of Marketing Decisions
Authors: David W. Stewart
1st Edition
3030155641,303015565X
