Suppose You Observe a Spot Exchange Rate of $2

question 80

Multiple Choice

Suppose you observe a spot exchange rate of $2.00/£.If interest rates are 5 percent APR in the U.S.and 2 percent APR in the U.K.,what is the no-arbitrage 1-year forward rate?

• A)£2.0588/$
• B)$2.0588/£
• C)£1.9429/$
• D)$1.9429/£

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Definitions:

Dissonant Behavior

Actions or conduct that is inconsistent with one's beliefs, values, or attitudes, often leading to discomfort or conflict.

Counterproductive Work Behavior

These are actions by employees that go against the objectives and interests of their employer, potentially harming the organization or its members.

Workplace Deviance Behavior

Actions by employees that violate organizational norms and policies, potentially harming the organization or its members.

Terminal Values

Values that influence the goals to be achieved or the end states of existence.