Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260316193
Author: Bodie
Publisher: MCG
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Chapter 19, Problem 7PS

If the current exchange rate is $ 1.35 / £ , the one-year Forward Exchange rate is $ 1.45 / £ , and the interest rate on British government bills is 3 % per year, what risk-free dollar denominated return cam be locked in by investing in the British bills? LO 19 2

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