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

question 7

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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Definitions:

Market Share

The percentage of total sales or revenue within an industry generated by a particular company, indicating the company's strength in the market relative to its competitors.

Cost Efficiency

The optimization of resources to ensure the best possible output for the least amount of input, emphasizing minimal waste of resources.

Operating Objectives

Specific, measurable goals that an organization aims to achieve in its daily operations to ensure efficiency and success.

Strategic Objectives

Long-term goals an organization aims to achieve, which guide its strategic directions and priorities.