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Assume that interest rate parity holds. U.S. interest rate is 10% and British interest rate is 13%. The forward rate on British pounds exhibits a

Assume that interest rate parity holds. U.S. interest rate is 10% and British interest rate is 13%. The forward rate on British pounds exhibits a ____ of ____ percent.

	a.	discount; 2.65
	b.	premium; 3.65
	c.	discount; 3.65
	d.	premium; 2.65

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