10) Suppose the 1-year risk-free rate of return in the U.S. is 4%, and the 1-year risk-free rate of return in Britain is 7%. The current exchange rate is 1 pound = U.S. $1.65. A 1-year future exchange rate of for the pound would make a U.S. investor indifferent between investing in the U.S. security and investing in the British security. A) $2.04 B) $1.60 C) $1.75 D) $2.34