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One year interest rates are currently 250 in the United States and 370 in Great Britain The current spot rate between the pound and dollar is 19000 What is the expected spot rate in one year

One-year interest rates are currently 2.50% in the United States and 3.70% in Great Britain. The current spot 
rate between the pound and dollar is $1.9000/£. What is the expected spot rate in one year if the international 
Fisher effect holds?
A) $1.9000/£
B) $1.9222/£
C) $1.8780/£
D) $1.8500/£

Apr 19 2021 View more View Less

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