Suppose 90-day investments in britain has a 2 quarterly, Financial Management

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Suppose 90-day investments in britain has a 2 quarterly

Suppose 90-day investments in Britain has a 2% quarterly (90-day) return. In the U.S., 90-day investments of similar risk has a 1.5% quarterly (90-day) return. The spot exchange rate is, 1 British pound equals 1.50. If interest parity holds what is the 90-day forward market rate ($/£)?

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Financial Management: Suppose 90-day investments in britain has a 2 quarterly

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Financial Management: Suppose 90-day investments in britain has a 2 quarterly

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