One-year forward rate, Assume the annual risk-free rate in

One-year forward rate

Reference no: EM1345927

Assume the annual risk-free rate in U.S. is 3%. The annual risk-free rate in Pounds Sterling is 5%. The spot rate of exchange is .625pounds/$. What must the one-year forward rate be between pounds and dollars?

Reference no: EM1345927

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One-year forward rate : Assume the annual risk-free rate in U.S. is 3%. The annual risk-free rate in Pounds Sterling is 5%. The spot rate of exchange is .625pounds/$. What must the one-year forward rate be between pounds and dollars?

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