If U.S. prices are expected to rise by 3.5% over the coming year and prices in Great Britain are expected to rise by 5.25% during the same time, what is the expected spot rate in one year given that the current spot exchange rate is $1.497?
A) $1.522
B) $1.470
C) $1.472
D) $1.499
Correct Answer:
Verified
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