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40 Suppose the British pound's spot exchange rate is 1.82 dollars per sterling pound. The British interest rate is expected to be 2%, and the

40

Suppose the British pound's spot exchange rate is 1.82 dollars per sterling pound. The British interest rate is expected to be 2%, and the US interest rate is expected to be 3%. What is the one year forward rate?

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$1.8018/

$0.5549/

$1.8382/

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