Question: Assume that the U . S . interest rate is 1 0 pereent, while the British interest rate is 1 5 percent. If interest rate

Assume that the U.S. interest rate is 10 pereent, while the British interest rate is 15 percent. If interest rate parity exists, then:
British iavestors who invest in the Uniled Kiapdogn will achieve the same refurn as U.S. investors who invest in the United States.
U.S. investors will carn a higher rate of return when enieg covered interest arbitrage than what they would earn in the United States.
U.S. investors will carn 15 percent whether they ase cevered interest arbitrage or invest is the United States.
U.S. investors will cars 10 percent whether they wie covered interest abitrage of invest in the United States.
Assume that the U . S . interest rate is 1 0

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