Assume that the nominal interest rate is 5% in the U.S. and 3% in the U.K. and the current spot exchange rate (St) is $1.34/. Assuming interest rate parity holds, calculate the percentage change of the Pound. Use the correct formula, not the approximation 1.94% appreciation 1.90% appreciation 1.90% depreciation None of the answers are correct 1.94% depreciation