The US $ to Pound spot exchange rate is 1.33. If the US interest rate is 2%

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The US $ to Pound spot exchange rate is 1.33. If the US interest rate is 2% per year and the futures exchange rate 1 year from today is 1.39.

What is the expected 1 year interest rate for the British Pound?

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International Economics

ISBN: 9781319218508

5th Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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Posted Date: Apr 07, 2023 02:01 AM

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The US $ to Pound spot exchange rate is 1.33. If the US interest rate is 2%

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Step 12 According to the Covered Interest Rate Parity the ... View the full answer

International Economics

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