Use the Information for the Question(s)below

question 42

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 three-year forward rate F₃ is closest to:

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

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Definitions:

HRM Functions

Activities performed by the Human Resources department, including recruitment, selection, training, and employee relations.

Specific Activities

Particular tasks or operations that are carried out to achieve a goal or objective.

Human Resource Management

The strategic approach to the effective management of people in a company or organization in a way that helps the business gain a competitive advantage.

Ethical Principles

The fundamental guidelines or rules that help govern behaviors and decision-making processes within a moral framework.