The Spot Exchange Rate for the British Pound Is 0

question 103

Multiple Choice

The spot exchange rate for the British pound is 0.6 pounds/dollar.The one-year interest rate in the United States is 5% and the one-year interest rate in Britain is 6%.Based on these rates,what one-year forward exchange rate is consistent with the absence of arbitrage?

• A)0.606
• B)0.612
• C)0.617
• D)0.624

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Refused or rejected a proposal, invitation, or opportunity.

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Approaches or methods that involve understanding and sharing the feelings of another person, often leading to compassionate action.

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