90-Day Investments in Britain Have a 6 Percent Annualized Return

90-day investments in Britain have a 6 percent annualized return and a 1.5 percent quarterly (90-day) return. In the U.S., 90-day investments of similar risk have a 4 percent annualized return and a 1 percent quarterly (90-day) return. In the 90-day forward market, 1 British pound equals $1.65. If interest rate parity holds, what is the spot exchange rate?

A) 1 pound = $1.6582
B) 1 pound = $1.8000
C) 1 pound = $0.6031
D) 1 pound = $1.0000
E) 1 pound = $0.8500