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Question 6 (5 points) Assume interest rate parity holds. The 1 year US interest rate is 3.15%. The UK 1 year interest rate is 1.43%.

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Question 6 (5 points) Assume interest rate parity holds. The 1 year US interest rate is 3.15%. The UK 1 year interest rate is 1.43%. What would be the 1-year forward rate premium on the USD/GBP? 1.7% -0.9% -1.4% 1.1% 1.5%

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