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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.
a. | premium; 2.73 | |
b. | discount; 3.65 | |
c. | premium; 3.65 | |
d. | discount; 2.73 |
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