The annual risk-free rate in the united states is 3 percent, Financial Management

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The annual risk-free rate in the united states is 3 percent

Suppose the spot and six-month forward rates on the South Korean won are SKW 1,304.82 and SKW 1,315.14, respectively.

The annual risk-free rate in the United States is 3 percent, and the annual risk-free rate in South Korea is 6 percent.

What must the six-month forward rate be to prevent arbitrage?

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