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Assume the spot rate for the British pound currently is .6239 per $1. Also assume the one-year forward rate is .6241 per $1. A risk-free

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Assume the spot rate for the British pound currently is .6239 per $1. Also assume the one-year forward rate is .6241 per $1. A risk-free asset in the U.S. is currently earning 4.5 percent. If interest rate parity holds, what rate can you earn on a one- year risk-free British security? A) 4.53 percent B) )4.57 percent C) 4.92 percent D) 4.04 percent E) 4.18 percent

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