The Spot Rate of the British Pound to the Dollar

question 60

Multiple Choice

The spot rate of the British pound to the dollar is $1.15. The 180-day forward rate is $1.17. Thus, the approximate annualized forward premium is ________.

• A) 1.018%
• B) 3.571%
• C) 7.273%
• D) 3.478%

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