Chapter Fifteen - University of Nevada, Reno

The current spot rate of the British pound is $1.60/£. a. What is the net interest income earned in dollars on this one-year transaction if the spot rates at the end of the year are SF1.70/$ and $1.85/£?. Loan amount = SF16 million/1.60 = $10 million. Deposit amount = $10m/1.60 = £6,250,000. ................
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