In December 2005,the spot exchange rate for the British Pound was CND$1.7188/£.Suppose that at the same time the one-year interest rate in Canada was 4.85% and the one-year interest rate in Great Britain was 3.15%.Based on these rates,what forward exchange rate is consistent with no arbitrage?

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The Answer of In December 2005,the spot exchange rate for the British Pound was CND$1.7188/£.Suppose that at the same time the one-year interest rate in Canada was 4.85% and the one-year interest rate in Great Britain was 3.15%.Based on these rates,what forward exchange rate is consistent with no arbitrage?

In December 2005,the Spot Exchange Rate for the British Pound