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20. As a trader in a bank, you are asked to provide a 2-year FX forward quote on GBP/JP The current exchange rate is ¥166 per £1 and the interest rate in the UK is 3% and the interest rate in Japan is -0.1%. What quote would you give? a. 171.15 b. 161.00 c. 156.16 d. 176.46

20. As a trader in a bank, you are asked to provide a 2-year FX forward quote on GBP/JP The current exchange rate is ¥166 per £1 and the interest rate in the UK is 3% and the interest rate in Japan is -0.1%. What quote would you give? a. 171.15 b. 161.00 c. 156.16 d. 176.46

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter22: International Financial Management
Section: Chapter Questions
Problem 1P
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20. As a trader in a bank, you are asked to provide a 2-year FX forward quote on GBP/JPY. The current exchange rate is ¥166 per £1 and the interest rate in the UK is 3% and the interest rate in Japan is -0.1%. What quote would you give? a. 171.15 b. 161.00 c. 156.16 d. 176.46
Transcribed Image Text:20. As a trader in a bank, you are asked to provide a 2-year FX forward quote on GBP/JPY. The current exchange rate is ¥166 per £1 and the interest rate in the UK is 3% and the interest rate in Japan is -0.1%. What quote would you give? a. 171.15 b. 161.00 c. 156.16 d. 176.46
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