Gven the sr 2pound and fr90 199pound and rus 5 and ruk
Given the SR = $2/£ , and FR90 =$1.99/£ and rUS = 5% and rUK = 8%
A)Calculate r* (the home country currency rate of return).
B) Would you see inward or outward interest arbitrage?
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Given the SR = $2/£ , and FR90 =$1.99/£ and rUS = 5% and rUK = 8% A)Calculate r* (the home country currency rate of return). B) Would you see inward or outward interest arbitrage
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