Use the Information for the Question(s)below

question 35

Multiple Choice

Use the information for the question(s) below.
The current spot exchange rate,S,is $1.8862/£.Suppose that the yield curve in both countries is flat.The risk-free rate on dollars,r_$,is 5.35% and the risk-free interest rate on pounds,r_£,is 4.80%.
-Using the covered interest parity condition,the calculated one-year forward rate F₁ is closest to:

• A)$1.8568/£
• B)$1.8764/£
• C)$1.9161/£
• D)$1.8961/£

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Definitions:

Significant Dissent

Describes a substantial or meaningful disagreement or opposition within a group or organization, often manifesting in debates or protests.

Decade

A period of ten years.

Occupational Sex Segregation

The unequal distribution of men and women in different professions, often leading to gendered wage gaps and career opportunities.

Gender Discrimination

The unjust or prejudicial treatment of individuals based on their gender, often resulting in denied opportunities, unequal pay, and other forms of inequality.