The Risk-Free Interest Rate in the US Is 8% While

question 9

Multiple Choice

The risk-free interest rate in the US is 8% while the risk-free interest rate in the UK is 15%.If the 1-year futures price on the British pound is $2.40,the spot market value of the British pound today should be __________.

• A) $1.93
• B) $2.22
• C) $2.56
• D) $2.76

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Definitions:

Carbon Dioxide Metabolism

The process by which living organisms produce energy through the oxidation of carbon dioxide, or its involvement in photosynthesis in plants.

Phosphorus

A chemical element with the symbol P, essential for life, involved in the formation of DNA, cell membranes, and bone and teeth structure.

Nucleic Acids

Complex organic substances that carry genetic information, consisting of two main types: DNA and RNA.

ATP

For the purpose of metabolism, ATP, a molecule, is essential in moving energy across cells.