Assume the eurodollar rate nine-month libor is 9 percent, Finance Basics

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Assume the eurodollar rate nine-month libor is 9 percent

Assume the Eurodollar rate (nine-month LIBOR) is 9 percent and the Eurosterling rate (nine-month LIBOR for the U.K. currency) is 11 percent. What is the nine-month forward $/£ exchange rate if the current spot exchange rate is $1.58/£? (Assume that nine months from now is 274 days.)

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Finance Basics: Assume the eurodollar rate nine-month libor is 9 percent

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Finance Basics: Assume the eurodollar rate nine-month libor is 9 percent

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