The current exchange rate between the United States and Britan is $2.0 per pound. The 6- month forward rate between the British pound and the U.S. dollar is $1.95 per pound. What is the interest rates in UK if US interest rate is 5%?
The current exchange rate between the United States and Britan is $2.0 per pound. The 6- month forward rate between the British pound and the U.S. dollar is $1.95 per pound. What is the interest rates in UK if US interest rate is 5%?
Chapter22: International Financial Management
Section: Chapter Questions
Problem 1P
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