Using interest rate parity theory, what GBP/USD spot rate would you expect to see in six months’ time?
The long-term prospects for interest rates in the UK and the USA are 2% and 6% per annum respectively. The GBP/USD spot rate is currently GBP/USD1.71. Using interest rate parity theory, what GBP/USD spot rate would you expect to see in six months' time?A . GBP/USD = 1.74B . GBP/USD...