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:

Racial Prejudice

The preconceived negative judgment or opinion about individuals based solely on their race, often stemming from stereotypes.

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Research that compares cultural factors across different societies to understand their impact on behavior and cognition.

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The quality of being confident and forceful in expressing oneself in social situations.

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Being reserved or having a nervous or timid tendency in the presence of others, often leading to discomfort in social situations.