Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U. S., 90-day investments of similar risk have a 4% annualized return and a 1% quarterly (90-day) return. In the 90-day forward market, 1 British pound equals $1.65. If interest rate parity holds, what is the spot exchange rate? a. 1 pound = $1.8000 b. 1 pound = $1.6582 c. 1 pound = $1.0000 d. 1 pound = $0.8500 e. 1 pound = $0.6031

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Ariana Odonnell

25 July, 18:09

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Lawrence Bernard · Answer 1

Part of the graph of the function f (x) = (x+4) (x-6) is shown below

Which statement about the function are true? Select two options