Suppose the 1-year risk-free rate of return in the U. S. is 4% and the 1-year risk-free rate of return in Britain is 7%. The current exchange rate is 1 pound = U. S. $1.65. A 1-year future exchange rate of __________ for the pound would make a U. S. investor indifferent between investing in the U. S. security and investing the British security.
