Chapter 17 Foreign Exchange Risk

Forecast exchange rates using: (a) purchasing power parity (b) interest rate parity ... so that although the pound is no longer in a fixed exchange rate system, it would not be correct to argue that it is on a genuinely free float. ... 3,949.51 (b)(i) If the actual spot rate for the UK company to buy and the bank to sell the Reds is 3.0800, the ... ................
................