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12 Assume that the spot exchange rate for the British Pound is $1.38/. The 12-month interest rates in US and UK are 4.2% and 2.3%

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12 Assume that the spot exchange rate for the British Pound is $1.38/. The 12-month interest rates in US and UK are 4.2% and 2.3% respectively. The no-arbitrage one year forward rate is closest to: O $1.35/ $0.76/ O $2.52/ O $1.41/

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