Suppose that the current price of one British pound is $1.59 and three-month interest rates in both

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Suppose that the current price of one British pound is $1.59 and three-month interest rates in both the United Kingdom and the United States is equal to 3 percent. If uncovered interest rate parity holds, what do you expect one pound will cost in three months?

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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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