Question: If the current exchange rate is $2/, the 1-year forward exchange rate is $2.1/, and the interest rate on British government bills is 8% per

If the current exchange rate is $2/, the 1-year forward exchange rate is $2.1/, and the interest rate on British government bills is 8% per year.

What risk-free dollar-denominated return can be locked in by investing in the British bills?

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