Solved: What must be the one year forward exchange rate, Accounting Standards

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What must be the one year forward exchange rate

Response to the following problem:

If the interest rate in the United Kingdom is 8 percent, the interest rate in the United States is 10 percent, the spot exchange rate is $1.75/£1, and interest rate parity holds, what must be the one-year forward exchange rate?

PLEASE SHOW CALCULATIONS ON HOW YOU ARRIVED AT YOUR ANSWER.

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Accounting Standards: What must be the one year forward exchange rate

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Accounting Standards: What must be the one year forward exchange rate

Reference No:- TGS02096918

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