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24. Assume the spot rate for the British pound currently is $1.5701/. Also assume the one-year forward rate is $1.5574/. A risk-free asset in the
24. Assume the spot rate for the British pound currently is $1.5701/. Also assume the one-year forward rate is $1.5574/. A risk-free asset in the U.S. is currently earning 3.2 percent interest rate. If interest rate parity holds, what rate can you earn on a one-year risk-free British security? A) 4.92 % B) 2.37 % C) 4.57 % D) 3.67 % E) 4.04 %
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