Multiple Choice
Assume that interest rate parity holds. U.S. interest rate is 13% and British interest rate is 10%. The forward rate on British pounds exhibits a ____ of ____ percent.
A) discount; 2.73
B) premium; 2.73
C) discount; 3.65
D) premium; 3.65
Correct Answer:
Verified
Correct Answer:
Verified
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