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4. Suppose the 1-year interest rate on British pounds is 11%, the dollar interest rate is 6%, and the current $/ spot rate is $1.80.

4. Suppose the 1-year interest rate on British pounds is 11%, the dollar interest rate is 6%, and the current $/ spot rate is $1.80. a. What do you expect the spot rate to be in 1 year? b. Why can we not observe the expected future spot rate

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