Question - The spot exchange rate for British pounds is 1.3025 (USD/GBP where the first-named currency-USD- is the unit currency) The 180-day risk-free interest rates in the US and Britain are 3% and 2.75% respectively. What is the forward exchange rate in GBP/USD?
Choose one answer.
A. 1.3025
B. 1.2993
C. 1.3057
D. None of the above