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Question 42 Given the information: Interest rate in US (Rh): 6% Interest rate in UK (Rf): 4% The current spot rate for GBP (SRo): $1.50

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Question 42 Given the information: Interest rate in US (Rh): 6% Interest rate in UK (Rf): 4% The current spot rate for GBP (SRo): $1.50 Suppose your forecast tells you that the spot rate of GBP one year later (SR1) will be $1.535. What is your uncovered rate of return from US (Ruh)? 3.5831% 6.4267 8.4733% 1.6287%

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