Prevailing annual int rate in US = 1%
Prevailing annual int rate in UK = 3%
Expected exchange rate between US and UK in 1 year = $1.6/pound
Using the theory of interest parity, what is the spot exchange rate?
I got $1.632 / pound
did i do this right? Can anyone check... thanks.
Prevailing annual int rate in UK = 3%
Expected exchange rate between US and UK in 1 year = $1.6/pound
Using the theory of interest parity, what is the spot exchange rate?
I got $1.632 / pound
did i do this right? Can anyone check... thanks.