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Suppose the 6-month risk-free rate of retum in the United States is 5. The current exchange rate is 1 pound ( = ) US$2.05. The

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Suppose the 6-month risk-free rate of retum in the United States is \5. The current exchange rate is 1 pound \\( = \\) US\\$2.05. The 6 month forward rate is 1 pound = US\\$2. The minimum yield on a 6-month risk-free security in Britain that would induce a U.S. investor to invest in the British security is A. \3.74 B. \9.48 C. \7.63 D. \5cap6

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