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Business, 30.03.2020 21:00 alma79

You can buy or sell the £ spot at $1.98 to the pound. You can buy or sell the pound one-year forward at $2.01 to the pound. If U. S. annual interest rates are 5 percent, what must be the approximate one-year British interest rate if interest rate parity holds?

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You can buy or sell the £ spot at $1.98 to the pound. You can buy or sell the pound one-year forward...
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