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1. An Eurozone invester finds out that the spot rate for:$ is 1.25, and it is expected that the inflation rate would be 8.

1. An Eurozone invester finds out that the spot rate for:$ is 1.25, and it is expected that the inflation rate would be 8. 91% in U. S and 12. 87% in Eurozone. Find the expected spot rate for:$ one year away. (10 ponts)

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