The 3-month forward GBP/USD rate is 1.2495. The 3-month interest rate for UK is 4%p.a. (per annum)

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The 3-month forward GBP/USD rate is 1.2495. The 3-month interest rate for UK is 4%p.a. (per annum) and for US is 3% p.a. What is the GBP/USD spot exchange rate?

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Multinational Business Finance

ISBN: 978-0133879872

14th edition

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

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Posted Date: Jun 23, 2023 01:23 AM

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The 3-month forward GBP/USD rate is 1.2495. The 3-month interest rate for UK is 4%p.a. (per annum)

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SOLUTION To calculate the GBPUSD spot exchange rate we can use the interest ... View the full answer

Multinational Business Finance

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