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If the interest rate in the United Kingdom is 8 percent, the interest rate in the United States is 12 percent, the spot exchange rate is $1.65/£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))

One-year forward exchange rate $ per BP

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92335449

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