Question: Problem 3 (3 points): The current exchange rate from pounds to dollars is 1.35 (GBP/USD). The current pound denominated continuously compounded risk- free rate 2%

Problem 3 (3 points): The current exchange rate from pounds to dollars is 1.35 (GBP/USD). The current pound denominated continuously compounded risk- free rate 2% and you observe the current dollar forward contract with three years to maturity to have a forward price of $1.45. What is the implied dollar denominated risk-free rate

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