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Title: The one-year forward exchange rate for the British Pound is $1.90/Pound. If the one-year U.S. ...
Post by: sammy on Jul 9, 2019

The one-year forward exchange rate for the British Pound is $1.90/Pound.  If the one-year U.S. interest rate is 4% and the one-year British interest rate is 6%, compute the implied spot exchange rate in $/Pound.
◦ 1.92
◦ 1.89
◦ 1.94
◦ 1.90

Title: The one-year forward exchange rate for the British Pound is $1.90/Pound. If the one-year U.S. ...
Post by: kardosa007 on Jul 9, 2019

1.94

Title: The one-year forward exchange rate for the British Pound is $1.90/Pound. If the one-year U.S. ...
Post by: sammy on Jul 9, 2019

Thanks

Title: The one-year forward exchange rate for the British Pound is $1.90/Pound. If the one-year U.S. ...
Post by: kardosa007 on Jul 9, 2019

Welcome :)