The Spot Rate for the British Pound Currently Is £

question 32

Multiple Choice

The spot rate for the British pound currently is £.55 per $1. The one-year forward rate is £.58 per $1. A risk-free asset in the U.S. is currently earning 3 percent. If interest rate parity holds,approximately what rate can you earn on a one-year risk-free British security?

• A) 4.01%
• B) 4.31%
• C) 6.22%
• D) 6.87%
• E) 8.62%

---

Definitions:

Change Process

The sequence of steps or actions undertaken to move an organization from its current state to a desired future state.

Lewin

Lewin, often referred to as Kurt Lewin, was a pioneering psychologist known for his contributions to social, organizational, and applied psychology.

Stages

Distinct phases or periods within a process or event, characterized by particular features or activities.

Resistance to Change

The reluctance or refusal to adapt to new methods, practices, or conditions within an organization or personal life.