What must be the one-year forward exchange


If the interest rate in the United Kingdom is 5 percent, the interest rate in the United States is 10 percent, the spot exchange rate is $1.721/£1, and interest rate parity holds, what must be the one-year forward exchange rate? (Do not round intermediate calculations. Round your answer to 4 decimal places. (e.g., 32.1616)) One-year forward exchange rate $ per BP.

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Financial Management: What must be the one-year forward exchange
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