(4) Assume that the comparable interest rates in UK and US are 12 and 5 respectively Given that the spot rate is $ 1 6 , (a) what would be the one year forward exchange rate (consider the US as a home currency) (b) Do you expect the funds to flow from US to UK due to the interest rate differential...

a To calculate the oneyear forward exchange rate using interest rate differentials we can use the in ...

(4) Assume that the comparable interest rates in UK and US are 12% and 5% respectively....

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ISBN: 978-0538480284

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(4) Assume that the comparable interest rates in UK and US are 12% and 5% respectively....

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