The current annual US interest rate is 10% while its UK counterpart is 8%. The direct quote of one pound sterling in the spot exchange rate market is $ 1.83. Price a one 4 month forward contract for the dollar - sterling exchange rate.

The current annual US interest rate is 10% while its UK counterpart is 8%. The direct quote of one pound sterling in the spot exchange rate market is $ 1.83. Price a one 4 month forward contract for the dollar - sterling exchange rate.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The current annual US interest rate is 10% while its UK counterpart is 8%.
The direct quote of one pound sterling in the spot exchange rate market is $
1.83. Price a one 4 month forward contract for the dollar - sterling
exchange rate.

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