Forward rate= GBP per USD * (1+Interest rate in Great Britain)/(1+Interest rate in USA) | |||
Forward rate= | =0.6134*(1+3.5%)/(1+2.5%) | ||
GBP per USD | 0.6195 | ||
Hence option A is correct | |||
Country USD Nominal Rate 2.5% GBP 3.5% The above table contains nominal interest rate information for the United States...
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