Suppose the spot exchange rate

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Suppose the spot exchange rate... Suppose the spot exchange rate is 2 U.S. dollars per British pound. The forward exchange rate is 1.9 dollars per pound. Which one of the following is true? The U.K. pound is selling at a discount. The U.S. dollar is expected to depreciate. The U.S. inflation rate is lower than the U.K. inflation rate. The U.K. pound is selling at a premium. U.S. interest rates are lower than U.S. interest rates.

Reference no: EM131348454

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