1.Exchange rate is currently $1.85 US per 1 British pound. Interest rate is 4% in the US and 3% in the UK. Find the expected future spot exchange rate one year from now, using the interest rate parity. Round to three decimal places. a. 1.868 b. 1.793 c. 1.733 d. 1.838 2.

Exchange rate is currently $1.85 US per 1 British pound. Interest rate is 3% in the US and 4% in the UK. A bank is short a futures contract on 1,000,000 pounds with F= $1.9 million maturing in one year. Find the delta of the banks position.

	a.	+966,183.57
	b.	-961,538.46
	c.	-970,873.79
	d.	+956,937.80