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Business, 19.10.2019 02:10 kimmy6973

Use interest rate parity to answer this question. a u. s. investor has a choice between a risk minus free one minus year u. s. security with an annual return of 4%, and a comparable british security with a return of 5%. if the spot rate is $1.43/pound, the forward rate is $1.44/pound, and there are no transaction costs, the investor should invest in the u. s. security. true or false?

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