Question about international aspects of financial management

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Question about International Aspects of Financial Management

The 1-year forward rate for the British pound is â?¤0.6781=$1. The spot rate is 0.6789=$1. The interest rate on a risk-free asset in the U.K. is 4.6 percent. If interest parity exists, what is the 1 year risk-free rate in the U.S.?

a) 4.68 percent
b) 4.72 percent
c) 4.77 percent
d) 4.83 percent
e) 4.87 percent

Reference no: EM1356006

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