The One-Year Forward Rate of the British Pound Is $1

question 4

Multiple Choice

The one-year forward rate of the British pound is $1.55, while the current spot rate is $1.60. Based on the forward rate, what is the expected percentage change in the British pound over the next year?

• A) +5.0%
• B) -3.1%
• C) +3.1%
• D) +3.2%
• E) None of the above

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