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Assume the spot rate for the British pound currently is .6369 per $1. Also assume the one-year forward fate is 6421 per $1. A nisk-free

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Assume the spot rate for the British pound currently is .6369 per $1. Also assume the one-year forward fate is 6421 per $1. A nisk-free asset in the US is currently earning 32 percent. If interest rate parity holds, what rate can you earn on a one-year risk-free British security? A. 4.04 percent 8.3.67 percent C. 4.18 percent D. 4.92 percent

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