The Risk-Free Interest Rate in the US Is 4% While

question 48

Multiple Choice

The risk-free interest rate in the US is 4% while the risk-free interest rate in the UK is 9%.If the British pound is worth $2.00 in the spot market,a 1-year futures rate on the British pound should be worth __________.

• A) $1.83
• B) $1.91
• C) $2.08
• D) $2.18

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