The spot exchange rate for the British pound is 1.75 U. S. dollars. 15-month U. S. and British risk-free interest rates are 3% and 4% (both expressed with continuous compounding). The 15-month forward rate is closest to:

a.

0.6717 British pounds per U. S. dollar

b.

1.7720 U. S. dollars per British pound

c.

0.5786 British pounds per U. S. dollar

d.

1.4888 U. S. dollars per British pound