Question: Suppose the interest rate in the U . S . is 5 % , and interest rate in U . K . is 1 0

Suppose the interest rate in the U.S. is 5%, and interest rate in U.K. is 10%. The spot exchange rate is S($)=1.2. What if the one-year forward exchange rate was a tiny bit too high at $1.146/? Please construct a CIA transaction.
Suppose the interest rate in the U.S. is 5%, and interest

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