Question $1$

The spot exchange rate between the Euro and the British Pound is $1\mathrm{.}16($EUR per GBP$).$ The $3-$month log interest rates $($per annum$)$

are $3\mathrm{.}65\%$ and $5\mathrm{.}55\%,$ respectively. Using covered interest rate parity, what is the price of $1GBP$ in terms of EUR for delivery in $3$

months?

Select one

A$.1\mathrm{.}1382$

B$.1\mathrm{.}1823$

C$.1\mathrm{.}1545$

D$.1\mathrm{.}1655$