What must be the forward price of the pound

Reference no: EM13274056

Assume the spot price of the British pound is currently $1.7. If the risk-free interest rate on 1-year government bonds is 5.4% in the United States and 7.5% in the United Kingdom, what must be the forward price of the pound for delivery 1 year from now?

Reference no: EM13274056

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