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Suppose the current exchange rate between the United States and the United Kingdom is $1.98/....

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Finance

Suppose the current exchange rate between the United States and the United Kingdom is $1.98/. The continuously compounded interest rate in the U.S. is 8%, while the continuously compounded British pound-denominated interest rate is 6%. What is the price of a 12-month forward contract on the British pound?

a. $1.9408/

b. $2.1024/

c. $1.9170/

imaged.$2.0200/

e. $1.8647/

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