Chapter 17 Foreign Exchange Risk

The following annual interest rates and exchange rates are currently available. US dollar. Sterling. Deposit rate. Borrowing rate. Deposit rate. Borrowing rate % % % % 1 month. 7 10.25 10.75 14.00 3 months. 7 10.75 11.00 14.25 $/£ exchange rate ($ = £1) Spot. 1.8625 – 1.8635 1 month forward. 1.8565 – 1.8577 3 months forward ................
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