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The spot rate on the British pound is 2.250 $/, the Canadian interest rate is 5.25 percent, the British interest rate is 7.5 percent, and

The spot rate on the British pound is 2.250 $/, the Canadian interest rate is 5.25 percent, the British interest rate is 7.5 percent, and the forward contract is for six months. What is the forward rate for the pound?

a) 2.208

b)2.274

c)3.167

d)2.300

e) none of the above

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