The interest rate on a risk-free asset in the u.k. is 4.6, Ask an Expert

Management Studies

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

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Business Management, Management Studies

Category:- Business Management
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