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Business, 17.12.2019 04:31 NightSun8891

Au. s. investor has a choice between a risk-free one-year u. s. security with an annual return of 4%, and a comparable british security with a return of 5%. if the spot rate is $1.43/£, the one-year forward rate is $1.44/£, and there are no transaction costs, should the investor invest in the u. s. security? (hint: use interest rate parity to answer this question) (show your calculations! )

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