The U.S risk-free rate is 1.5% compounded continuously. The $/UK pound spot rate is 1.50. The 6-month

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The U.S risk-free rate is 1.5% compounded continuously. The $/UK pound spot rate is 1.50. The 6-month forward contract price is 1.51.

Determine the UK pound continuous interest rate.

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Advanced Accounting

ISBN: 978-0077431808

10th edition

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

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Posted Date: Apr 15, 2024 11:56 AM

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The U.S risk-free rate is 1.5% compounded continuously. The $/UK pound spot rate is 1.50. The 6-month

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