An American firm is owed 7,151,070 British Pounds receivable in one year. The current spot rate is $1.377/ pound. A UK bank is paying 3.2% on deposits or will lend at 4.8%. A US bank is paying 5.2% on deposits or will lend at 6.7%. The firm will hedge this exposure with money market hedging. What is the effective exchange rate? Note: your answer should include 3 decimal places 1.3823 margin of error +/0.1