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Author Question: The one-year forward exchange rate for the British Pound is $1.90/Pound. If the one-year U.S. ...  (Read 16 times)

sammy

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The one-year forward exchange rate for the British Pound is $1.90/Pound. If the one-year U.S. ...
« 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

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Marked as best answer by sammy on Jul 9, 2019

kardosa007

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The one-year forward exchange rate for the British Pound is $1.90/Pound. If the one-year U.S. ...
« Reply #1 on: Jul 9, 2019 »
1.94

sammy

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The one-year forward exchange rate for the British Pound is $1.90/Pound. If the one-year U.S. ...
« Reply #2 on: Jul 9, 2019 »
Thanks

kardosa007

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The one-year forward exchange rate for the British Pound is $1.90/Pound. If the one-year U.S. ...
« Reply #3 on: Jul 9, 2019 »
Welcome :)
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