The spot exchange rate for British pounds is 0.5025 (BP/$US) .The one-year risk-free rates in the U.S.and Britain are 3.00% and 2.75%,respectively.What is the forward exchange rate in BP/$US?
A) 0.6170
B) 0.5037
C) 0.5013
D) 0.6050
Correct Answer:
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