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8. You can buy or sell the spot at $1.98 to the pound. You can buy or sell the pound 1 year forward at $2.01 to the pound. If U.S. annual interest rates are 5%, what must be the approximate one-year British interest rate if interest rate parity holds? A) 4.00% B) 5.25% C) 2.75% D) 3.48% E) 6.52%