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2. The 6-month interest rate in the United States is 10%; in Mexico it is 12%. The current spot rate (dollars per peso) is $0.40.

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2. The 6-month interest rate in the United States is 10%; in Mexico it is 12%. The current spot rate (dollars per peso) is $0.40. a. What do you expect the 6-month forward rate to be? b. Is the peso selling at a premium or discount? c. If the expected spot rate in 6 months is $0.38, what is the risk premium

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