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Business, 12.08.2020 06:01 jor66

Assume the following: (1) the interest rate on 6-month treasury bills is 8 percent per annum in the United Kingdom and 4 percent per annum in the United States; (2) today's spot price of the pound is $1.50 while the 6-month forward price of the pound is $1.485.If the price of the 6-month forward pound were to , U. S. investors would no longer earn an extra return by shifting funds to the United Kingdom. a. Rise to $1.52b. Rise to $1.53c. Fall to $1.48d. Fall to $1.47

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