What must the six-month forward rate be to prevent, Financial Management

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What must the six-month forward rate be to prevent

Suppose the spot and six-month forward rates on the South Korean won are SKW 1,305.00 and SKW 1,314.78, respectively. The annual risk-free rate in the United States is 5 percent, and the annual risk-free rate in South Korea is 8 percent.

What must the six-month forward rate be to prevent arbitrage?

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Financial Management: What must the six-month forward rate be to prevent

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