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If the interest rate is lower in the U.S. than in the United Kingdom, and if the forward rate of the British pound is the same as its spot rate:

Correct Answer: U.S. investors could possibly benefit from covered interest arbitrage.

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International Financial Management MCQ: If the interest rate is lower in the U.S. than in the United Kingdom, and if the forward rate of the British pound is the same as its spot rate: | Extra Education