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Suppose the current exchange rate between the United States and the United Kingdom is $1.76/. The continuously compounded interest rate in the U.S. is 7%,

Suppose the current exchange rate between the United States and the United Kingdom is $1.76/. The continuously compounded interest rate in the U.S. is 7%, while the continuously compounded British pound-denominated interest rate is 9%. What is the price of a 12-month prepaid forward contract on the British pound?

a. $1.7956/

b. $1.5902/

c. $1.7251/

image text in transcribedd.$1.6085/

e. $1.9257/

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