Assume that interest rate parity holds

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Reference no: EM13880958

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. premium; 2.73

b. discount; 3.65

c. premium; 3.65

d. discount; 2.73

Reference no: EM13880958

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