Homework Assignment 6 - Leeds School of Business
Thus one has 76.5 euros at the end of 1 year. One can then exchange this back into US dollars at an exchange rate of 0.67 euro/dollars. This gives a value of 114.18. Thus the return in US dollars is 14.18%. The six-month forward rate between the British pound and the US dollar is $1.75 per pound. ................
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