What must be the one-year forward exchange


If the interest rate in the United Kingdom is 6 percent, the interest rate in the United States is 9 percent, the spot exchange rate is $1.7/£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))

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What must be the one-year forward exchange
Reference No:- TGS02813331

Expected delivery within 24 Hours