Assume a British investor observes the following situation:

Current spot rate: 1.10/$

UK 1 year interest rate: .10

US 1 year interest rate: .13

What should be the percentage change in direct quotes according to IFE? Round intermediate steps and your final answer to four decimals and enter your response in decimal format (EX: .XXXX).

What should be the future spot price of dollars in terms of pounds according to IFE?Round intermediate steps and your final answer to four decimals.Do not use currency symbols or words when entering your response.