Forward price of the pound for delivery


Problem:

Assume the spot price of the British pound is currently $1.7. If the risk-free interest rate on 1-year government bonds is 5.4% in the United States and 7.5% in the United Kingdom,

Required:

Question: What must be the forward price of the pound for delivery 1 year from now?

Note: Please show the work not just the answer.

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Finance Basics: Forward price of the pound for delivery
Reference No:- TGS0878868

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