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Question 33

Multiple Choice

 Country  U.S. $ equiv.    Currency per U.S. $  
   Tuesday  Monday  Tuesday  Monday
 Britain (Pound) £62,500  1.6000  1.6100  0.6250  0.6211
 1 Month Forward  1.6100  1.6300  0.6211  0.6173
 3 Month Forward  1.6300  1.6600  0.6173  0.6024
6 Month Forward  1.6600  1.7200  0.6024  0.5814
 13 Month Forward  1.7200  1.8000  0.5814  0.5556
Using the table shown,what is the most current spot exchange rate shown for British pounds? Use a direct quote from a U.S.perspective.


A) $1.61 = £1.00
B) $1.60 = £1.00
C) $1.00 = £0.625
D) $1.72 = £1.00

Correct Answer:

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