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please answer second part of question for the new equilibrium exchange rate ...

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Finance

please answer second part of question for the new equilibrium exchange rate
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Suppose the dollar interest rate and the pound sterling interest rate are the same, 7 percent per year. What is the relation between the current equilibrium dollaripound exchange rate and its expected future level? A. Expected dollar/pound exchange rate is lower than the current one: B. Expected dollar/pound exchange rate is higher than the current one. 'C. Expected dollar/pound exchange rate is equal to the current one. D. One cannot tell given the information above. Suppose the expected future exchange rate, $1.61 per pound, and the US interest rate remain constant, while Britain's interest rate rises to 10 percent per year. What is the new equilibrium dollar/pound exchange rate? New equilibrium exchange rate is $ per pound. (Enter your response to the nearest penny.)

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