Suppose the 3 month us interest rate is 3 003 the 3 month, Ask an Expert

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Suppose the 3 month U.S. interest rate is 3% ((0.03), the 3 month UK interest rate is 2% (0.02), the current spot rate is $2 = £1, and the 3 month forward rate is $2.04 = £1. Would an investor in USA choose to invest in the US or the UK? Explain, and show all relevant calculations.

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Financial Management, Finance

Category:- Financial Management
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