Multiple Choice
If the 12-month interest rates for the United States and the United Kingdom are 6% and equal,and £1 = $2 in the spot market,then what do you expect the 12-month forward rate to be?
A) 2.10
B) 1.90
C) 2.00
D) 2.11
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q23: Suppose that the forward rate of Mexican
Q24: We can expect very small deviations from
Q25: In order to infer expected future exchange
Q26: The term structure relationships regarding different interest
Q27: The effective return from a foreign investment
Q29: Change in U.S.policy can lead to changes
Q30: Suppose that the spot exchange rate for
Q31: Give 3 reasons for deviations from IRP.
Q32: Suppose that at some point the spot
Q33: The relationship that implies that the nominal