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Question: assume that the uks oneyear cd rate is 325 the...

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7 Assume that the UKs one-year CD rate is 3.25%. The corresponding one-year CD rate in the U.S. is 3.46% and the spot rate of pound is s1.9134. What is the expected future spot rate of pound in one year? What is the expected percentage rate ofappreciation in pound? ljumma and covered interest arbitrage
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