Solved: What must be the forward price of the pound for delivery 1, Basic Statistics

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What must be the forward price of the pound for delivery 1

Assume the spot price of the British pound is currently $2.6. If the risk-free interest rate on 1-year government bonds is 4.2% in the United States and 6.1% in the United Kingdom, what must be the forward price of the pound for delivery 1 year from now?

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Basic Statistics: What must be the forward price of the pound for delivery 1

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