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Suppose the spot exchange rate is 2 US dollars per British pound. The forward exchange rate is 1.9 dollars per pound. Which of the following

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Suppose the spot exchange rate is 2 US dollars per British pound. The forward exchange rate is 1.9 dollars per pound. Which of the following is true? Select one a. The pound is selling at a discount b. The US inflation rate is lower c. The pound is selling at a premium d. US interest rates are lower X

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