In Q5, how will investors' action affect the spot exchange rate between British pound and US dollar? The spot price of the pound will go up. The spot price of the pound will go down. The spot price of US dollar will go up. None of the above is correct. In Q5, how will investors' action affect the forward exchange rate between British pound and US dollar? (Assume that investors use forward exchange market to get rid of exchange rate risk when they make international investment.) The forward price of the pound will go up. The forward price of the pound will go down. The forward price of the US dollar will go down. None of the above is correct. The interest rate in the U.K. is 6% for 90 days, the current spot rate is $2.00/pound and the forward rate is $1.96/pound. If the covered interest parity holds, then the interest rate in the U.S. for 90 days would have to be: 6% 4% 3% 2% In Q5, how will investors' action affect the spot exchange rate between British pound and US dollar? The spot price of the pound will go up. The spot price of the pound will go down. The spot price of US dollar will go up. None of the above is correct. In Q5, how will investors' action affect the forward exchange rate between British pound and US dollar? (Assume that investors use forward exchange market to get rid of exchange rate risk when they make international investment.) The forward price of the pound will go up. The forward price of the pound will go down. The forward price of the US dollar will go down. None of the above is correct. The interest rate in the U.K. is 6% for 90 days, the current spot rate is $2.00/pound and the forward rate is $1.96/pound. If the covered interest parity holds, then the interest rate in the U.S. for 90 days would have to be: 6% 4% 3% 2%