If the current exchange rate is 165al the 1-year forward, Ask an Expert

Management Studies

If the current exchange rate is $1.65/A??L, the 1-year forward exchange rate is $1.85/A??L, and the interest rate on British government bills is 7% per year.

What risk-free dollar-denominated return can be locked in by investing in the British bills?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M91646756

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