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You can buy or sell the spot at $1.98 to the pound. You can buy or sell the pound one-year forward at $2.01 to the

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You can buy or sell the spot at $1.98 to the pound. You can buy or sell the pound one-year forward at $2.01 to the pound. If U.S, annual interest rates are 5 percent, what must be the approximate one-year British interest rate if interest rate parity holds? Multiple Choice 4.00% 5.25% 275% 3.43% 5.65%

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