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Assume that the spot rate of the British pound is $1.50, the one-year U.S. interest rate is 7 percent, and the one-year British interest rate

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Assume that the spot rate of the British pound is $1.50, the one-year U.S. interest rate is 7 percent, and the one-year British interest rate is 8 percent. What should the forward rate premium or discount of the British pound be? (1+in)_1 p= (1+i;) (1+i)

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