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Assume interest rate parity exists if the spot rate on the

Question: Assume interest rate parity exists. If the spot rate on the British pound is $2 and the 1-year British interest rate is 7 percent, and the 1-year U.S. interest rate is 11 percent, what is the pound's forward discount or premium? ( Show the work )

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Finance Basics: Assume interest rate parity exists if the spot rate on the

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