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You convert US $100,000 to British pounds () and make a one-year investment at 3% in the UK. The current exchange rate is $1.60/. The

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You convert US $100,000 to British pounds () and make a one-year investment at 3% in the UK. The current exchange rate is $1.60/. The one-year forward rate is $1.55/. If you hedge the currency risk with a forward contract, what is the ending US dollar value of your investment in one year? $100,000 $99,781.25 $106,322.58 $103,000

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