Question: Opoints Save Answer QUESTION 7 Suppose that you are able to buy or sell the spot at $1.97 to the pound and you can buy

Opoints Save Answer QUESTION 7 "Suppose that you are able to buy or sell the spot at $1.97 to the pound and you can buy or sell the pound one year forward at $2.01 to the pound. If U.S. annual interest rates are 6%, what must be the approximate one-year British interest rate if interest rate parity holds?" Hint: you can use the formula 3.23% 3.97% none of the above 49 3.48%

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