If the UK interest rate is 6 percent, the United States is 8 percent, the spot exchange rate is $1,6502 / £1 and interest rate parity applies, what should the one-year forward exchange rate be? (Do not round up intermediate calculations. Round your answer to 4 decimal places. (eg 32.1616))

Answer rating: 100% (QA)

According to interest rate parity the difference in intere... View the full answer