Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Use the information below to answer the following
questions.
U.K. Pound
6-months forward (£)
Japan Yen
6-months forward ()
Switzerland Franc
6-months forward
(SF)
Currency per U.S. $
0.5135
0.5204
108.21
106.96
1.0492
1.0478
Suppose interest rate parity holds, and the current six-month risk-free rate in the United
States is 4.6 percent.
What must the six-month risk-free rate be in Great Britain?
4
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