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q3 Assume the spot rate for the British pound currently is .6369 per $1. Also assume the one-year forward rate is .6421 per $1. A
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Assume the spot rate for the British pound currently is .6369 per $1. Also assume the one-year forward rate is .6421 per $1. A risk-free asset in the U.S. is currently earning 3.2 percent. If interest rate parity holds, what rate can you earn on a one-year risk-free British security? A. 4.18 percent B. 3.67 percent C. 4.92 percent D. 4.04 percent
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