Question: 20 You have the following information: USD interest rate: 70% pa GBPinterest rate 120% pa Spot exchange rate (USD/GBP or USD per GBP) 160 Use

20 You have the following information: USD interest rate: 70% pa

20 You have the following information: USD interest rate: 70% pa GBPinterest rate 120% pa Spot exchange rate (USD/GBP or USD per GBP) 160 Use the covered interest party condition to derive one-year forward exchange rate (GBP per USD) F = GBP USD Please keep four decimal points in your answer or in the format of 2000 Maximum marks: 5

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