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5. The Wall Street Journal indicated, in its issue of Tuesday, March 31, 2009, that, in late trading on Monday, March 30, 2039, the spot
5. The Wall Street Journal indicated, in its issue of Tuesday, March 31, 2009, that, in late trading on Monday, March 30, 2039, the spot U.K. pound was selling at a price of $1.4258 per pound. At the same time; the six-months forward UK. pound was selling at a price of $1.4268 per pound. Observation of these rates indicates that the U.K. pound was selling at a six-months forward against the dollar, and= if covered interest parityr had indeed been attained at that time, the conclusion could validly be reached that interest rates in the United Kingdom were than comparable interest rates in the United States. a. premium; lower b. premium; higher c. discount; lower d. discount; higher
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