If the current exchange rate is 2 the 1-year forward


Question: If the current exchange rate is $2/£, the 1-year forward exchange rate is $2.1/£, and the interest rate on British government bills is 8% per year. What risk-free dollar-denominated return can be locked in by investing in the British bills? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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Finance Basics: If the current exchange rate is 2 the 1-year forward
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