Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the spot rate for the british pound currently is .

The spot rate for the British pound currently is .55 per $1. The one-year forward...

90.2K

Verified Solution

Question

Finance

The spot rate for the British pound currently is .55 per $1. The one-year forward rate is .58 per $1. A risk-free asset in the U.S. is currently earning 3 percent. If interest rate parity holds, approximately what rate can you earn on a one-year risk-free British security?

image

75. The spot rate for the British pound currently is .55 per $1. The one-year forward rate is .58 per $1. A risk-free asset in the U.S. is currently earning 3 percent. If interest rate parity holds, approximately what rate can you earn on a one-year risk-free British security? A. 4.01% B. 4.31% C. 6.22% D. 6.87% E. 8.62%

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In the first four months of 2017, a company realized monthly returns of 1.1percent, 1.7percent, 1.5percent,...

Finance
Q

If the decomposition of 45.987g ammonium nitrate is carried out at 18.0 degrees C and 786.3...

Chemistry
Q

Cite the similarities and differences of men and women in communication styles in terms of interaction,...

Psychology
Q

5 equal zero So one in which A circular coil of 100 turns and effective...

Physics
Q

Which among the following can emit radiation Excited electron in H atom Excited nucleus Excited...

Physics
Q

Without using a calculator, find the value ofsin (5) + cos (5) - sin(60)/cos(30)

Basic Math
Q

Find the volume of the solid generated when R shaded region is revolved about the...

Calculus
Q

Find two polar coordinate representations for the rectangular coordinate point 3 3 3 one with...

Algebra
Q

The following is selected information for Wildhorse Company. Answer the questions asked about each of...

Accounting
Q

Single Pantiefactory Overhead Rate The total factory overhead Bardot Maris Company is geted for the...

Accounting
Q

A. $6,048 B. 55,040 c. $5.260 b. 56020 E $5.573

Accounting
Q

Hello, I only need the answers for b-1 where it's in red. I tried those...

Finance