Exhibit 11.1 Assume the Following

question 194

Multiple Choice

Exhibit 11.1 Assume the following:
(1) the interest rate on 6-month treasury bills is 8 percent per annum in the United Kingdom and 4 percent per annum in the United States;
(2) today's spot price of the pound is $1.50 while the 6-month forward price of the pound is $1.485.
-Refer to Exhibit 11.1.If the price of the 6-month forward pound were to ____,U.S.investors would no longer earn an extra return by shifting funds to the United Kingdom.

• A) Rise to $1.52
• B) Rise to $1.53
• C) Fall to $1.48
• D) Fall to $1.47

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Definitions:

Cultural Adaptation

The process by which individuals or groups adjust to new cultural environments, adopting new norms and practices.

Units Of Adaptation

The basic elements or entities through which evolutionary changes occur, often considered to be genes or organisms depending on the context.

Organisms

Living entities that can function independently, ranging from microorganisms like bacteria to multicellular forms including plants and animals.

Polynesian Seafarers

Refers to the skilled navigators and sailors of the Polynesian islands, who explored and settled the vast Pacific Ocean using traditional wayfinding techniques and celestial navigation.