The current spot exchange rate, S, is $1.8862/. Suppose that the yield curve in both countries is flat. The risk-free rate on dollars, r_$, is 5.35% and the risk-free interest rate on pounds, r, is 4.80%.

Using the covered interest parity condition, the calculated one-year forward rate F1 is closest to:

Group of answer choices

A) $1.8568/

B) $1.8764/

C) $1.9161/

D) $1.8961/