Let the US interest rate be 2%, the UK rate 0%, E $/ GBP = 1.3, and F $/GBP = 1. If you invest $10 in a US account, the dollar value of your US…
Let the US interest rate be 2%, the UK rate 0%, E $/ GBP= 1.3, and F $/GBP = 1.25. If you invest $10 in a US account, the dollar value of your US return is:
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