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Please show work Assume the exchange rate is GBP 1.35/USD, the US risk-free rate is 7.0 percent, and the UK risk-free rate is 3.0 percent.

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Assume the exchange rate is GBP 1.35/USD, the US risk-free rate is 7.0 percent, and the UK risk-free rate is 3.0 percent. What is the implied one-year forward rate? GBP 1.40/USD GBP 1.30/USD GBP 1.35/USD GBP 1.20/USD GBP 1.25/USD Assume the exchange rate is GBP 1.35/USD, the US risk-free rate is 3.0 percent, and the UK risk-free rate is 3.0 percent. What is the implied one-year forward rate? GBP 1.20/USD GBP 1.40/USD GBP 1.25/USD GBP 1.30/USD GBP 1.35/USD

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