The current British pound exchange rate is 1.15 pounds per dollar. If British Inflation is expected...

Question

Question

Answer 1

Answer #1

Indirect quotation in Forward Market after five months should be as follows-

Direct quotation after 6 months-

=(1.15*104/103)

= 116.11

Converting it into the indirect quote-

(1/116.11)= .86

Correct answer will be option (C).86

Answer 2

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