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

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

a.	Discount; 2.73
b.	Premium; 2.73
c.	Discount; 3.65
d.	Premium; 3.65

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