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The interest rate in Great Britain is 5.0 percent per year and the interest rate in the USA is 6.0 percent. If the spot exchange

The interest rate in Great Britain is 5.0 percent per year and the interest rate in the USA is 6.0 percent. If the spot exchange rate is 1.3 dollars per pound, what is the price of a 11 month forward contract to buy the British pound?

a) 1.1753

b) 1.4379

c) 1.3120

d) 1.2881

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