When interest Rate parity. the larger the degree by which the U. S. interest rate exceeds the foreign interest rate, the: larger will be the forward discount of the foreign currency. larger will be the forward premium of the foreign currency. smaller will be the forward premium of the foreign currency. smaller will be the forward discount of the foreign currency. If inflation in UK is expected to be 7% while inflation in the US is expected to be 4%, Currently, the spot rate for GBP is: GBP1 = USD1 .56. According to PPP. what should be the value of GBP one year from today? Future Exchange rate should be about GBP1 = USD1 .6068 Future Exchange rate should be about GBP1 = USD1 .5690 Future Exchange rate should be about GBP1 = USD1 .5130 Cannot be determined by PPP Assume that 1 Singapore dollar traded at Bank X and Bank Z with following bid and ask price If you have USD 1,000,000, what would be your profit if you execute lo0cational arbitrage? USD 11, 764. USD 11, 964. USD 36, 585. USD 24, 390. USD 18219