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If the Spot Rate of the British Pound Is $1

Question 97

Multiple Choice

If the spot rate of the British pound is $1.50, and the one-year forward rate has a discount of 3 percent, the one-year forward rate is $____.

A) 1.50
B) 1.47
C) 1.55
D) 1.46
E) None of these are correct.

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