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edelynpl edelynpl
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9 months ago
Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In Canada, 90-day investments of similar risk have a 4% annualized return and a 1% quarterly (90-day) return. In the 90-day forward market, 1 British pound equals $1.96. If interest rate parity holds, what is the spot exchange rate?


▸

1 pound = $1.9697



▸

1 pound = $1.8582



▸

1 pound = $1.4308



▸

1 pound = $0.8500

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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RobnHoodRobnHood
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9 months ago
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edelynpl Author
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9 months ago
Brilliant ツ
aznzergs
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This calls for a celebration Person Raising Both Hands in Celebration
lolaww
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2 hours ago
Smart ... Thanks!
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