Due to the integrated nature of their capital markets, investor in both the U.S. and Great Britain require the same expected real interest rate of 3 percent. The expected annual inflation in the U.S. is 2 percent and in the U.K. expected annual inflation is 5%. The spot exchange rate is currently 1.00 = $1.80. Can you infer the forward dollar-pound exchange rate for one-year maturity? Select one: a. 1.03 = $1.8540 b. 1.00 = $1.85 c. 1.00 = $1.7486 d. 1.00 = $1.75