Current market conditions are as follows: spot rate (e) between dollar and pound is $1.33 = £1. The rate of return on 1-year domestic bonds (i$) is 1% and the rate of return on 1-year British bonds (i£) is 2%.  What is the expected spot rate (ee) 1 year from now that eliminates any arbitrage opportunities given the current market conditions? (Round your answer to 2 decimals).

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Current market conditions are as follows: spot rate (e) between dollar and pound is $1.33 = £1. The rate of return on 1-year domestic bonds (i$) is 1% and the rate of return on 1-year British bonds (i£) is 2%.  What is the expected spot rate (ee) 1 year from now that eliminates any arbitrage opportunities given the current market conditions? (Round your answer to 2 decimals).

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