What must be one-year forward exchange rate

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If the interest rate in the United Kingdom is 6 percent, the interest rate in the United States is 9 percent, the spot exchange rate is $1.7/£1, and interest rate parity holds, what must be the one-year forward exchange rate? (Do not round intermediate calculations. Round your answer to 4 decimal places. (e.g., 32.1616))

One-year forward exchange rate $  per BP

Reference no: EM131523319


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