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The spot exchange rate ($/pound) is 1.5678 and the 1-year forward exchange rate is 1.6031. If the interest rate in the U.S. is 4.5%, then

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The spot exchange rate ($/pound) is 1.5678 and the 1-year forward exchange rate is 1.6031. If the interest rate in the U.S. is 4.5%, then interest rate in the U.K.. should be approximately according to covered interest parity. A. 2% B. 2.25% C.3% D. 4.5% E. 6.75%

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