Question: Question 36 Given the information: Interest rate in US (Rh): Interest rate in UK (Rf): The current spot rate for GBP (SR): 1-year forward rate

Question 36 Given the information: Interest rate in US (Rh): Interest rate in UK (Rf): The current spot rate for GBP (SR): 1-year forward rate for GBP (FR): 6% 4% $1.50 $1.52 Trading based on covered interest arbitrage will cause Downward pressure on the GBP's SR. Upward pressure on Rh. Downward pressure on Rf. Downward pressure on the GBP's FR

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