Suppose that 1-year, 2-year, and 3-year forward prices for the British pound are $1.42/, $1.26/, and $1.15/, respectively. The 1-year, 2-year, and 3-year effective annual interest rates in the U.S. are 4.8%, 5.6%, and 6.2%. What is the fixed exchange rate in a 3-year British pound swap? (In other words, what 3-year U.S. dollar annuity is equivalent to a 3-year annuity of 1?)

	a.	$1.28
	b.	$1.34
	c.	$1.15
	d.	$1.05
	e.	$1.51