Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. if the interest rate in the united kingdom us 14%,

If the interest rate in the United Kingdom us 14%, the interest rate in the...

70.2K

Verified Solution

Question

Finance

If the interest rate in the United Kingdom us 14%, the interest rate in the United States is 10%, the spot exchange rate is $1.40/E1, and interest rate parity holds, what must be one-year forward exchange rate? Hint (1+rUS) x (1+rUK) x F

a. $1.351/ E1

b. $1.375/ E1

c. $1.496/E1

d. $1.523?E1

e. None of the above

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What are the theories that are related to the link between organisational performance and hrm

Operations Management
Q

Calculate the amount (in mL) of 0.0462M calcium hydroxide that would be required to completely react...

Chemistry
Q

Identify likely directions of sugar translocation and explain how it changes with time in these scenarios: a....

Biology
Q

Spinal implants, knee & hip joints comprise the majority of joint procedures. Describe & classify these...

Mechanical Engineering
Q

Question #6.2: For each of the following independent cases: a) Record the transaction using the accounting equation....

Accounting
Q

Write name date and period Show all sketches and work 1 Solve for m F...

Basic Math
Q

Sketch the region enclosed by x + y = 2 and x + y =...

Basic Math
Q

1.ek. 17 Durchase 3,200 units of 37

Accounting
Q

please solve. thank you FULL SCREEN PINTER VERSION BACK Question...

Accounting
Q

The Rolling Department of Kraus Steel Company had 3,200 tons in beginning work in process...

Accounting
Q

The operating and maintenance expenses for a mining machine are expected to be $11,550 in...

Accounting
Q

The risk-free interest rate is 8% per year. Part 1 Attempt 1/1 What amount of...

Finance