Chapter 17 Foreign Exchange Risk

Forecast exchange rates using: (a) purchasing power parity (b) interest rate parity ... The current spot rate for US dollars against UK sterling is 1.4525 – 1.4535 $/£ and the one-month forward is quoted as 1.4550 – 1.4565. ... Borrow the appropriate amount in pounds now. Step 2: Convert the pounds … ................
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