The Next Questions Refer to the Following

question 3

Multiple Choice

The next questions refer to the following.
Suppose currency traders expect that one year from now, £1 will be worth $1.50, and the one-year risk-free interest rate in the UK is 7% while the one-year risk-free rate in the US is 3%.
-Then according to uncovered interest parity,today's spot rate should price £1 at

• A) $1.35
• B) $1.40
• C) $1.44
• D) $1.56
• E) $1.65

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Definitions:

Sternum

A bone that forms the front and middle portion of the rib cage; also called the breastbone or breast plate.

AV Node

The atrioventricular node, a part of the heart's electrical system that acts as a gatekeeper, slowing the electrical current before it passes from the atria to the ventricles.

SA Node

The sinoatrial node, also known as the heart's natural pacemaker, is a cluster of cells situated in the right atrium of the heart that regulates the heart's rhythm by generating electrical impulses.

Bundle of His

A collection of heart muscle cells specialized for electrical conduction that transmits the electrical impulses from the atrioventricular node to the ventricles of the heart.