Question: Please gave the step by step answer 2. Use the covered interest parity condition to fill in the following table: US Interest UK interest Spot

 Please gave the step by step answer 2. Use the covered

Please gave the step by step answer

2. Use the covered interest parity condition to fill in the following table: US Interest UK interest Spot exchange Forward rate rate rate exchange rate 10% 8 % 10% % 5% % 0 % 9% 2.00 S/ 2.00 $ $/ 2.00 S/E S'E 2.04 $/ 2.10 SI 1.98 S/E

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