In December 2005, the spot exchange rate for the British pound was 1.7188/euros. Suppose that at the

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In December 2005, the spot exchange rate for the British pound was 1.7188/euros. Suppose that at the same time the one year interest rate in the United States was 4.85% and the one year interest rate in Great Britain was 3.15% based on these rates, what forward exchange rate is is consistent with no arbitrage

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In December 2005, the spot exchange rate for the British pound was 1.7188/euros. Suppose that at the

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