suppose 1-year, 2-year, and 3-year forward prices for the British pound are $1.76/E, and $1.67/E, and $1.37/E, respectively. The 1- year, 2-year, and 3-year effective annual interest rates in the U.S. are 5.3% 4.9% and 4.7%. What is the fixed exchange rate in a 3-year British pound swap? ( in other words, what is 3 year U.S dollar annuity is equivalent to a 3-year annuity of E17). E= Euros

a. $1.80

b. $1.97

c.$1.46

d.$1.61

e.$1.86