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2.(5pt) Suppose that the spot exchange rate of EUR is 1.10505 USD for 1 Euro. Suppose that the 3 months USD interest rate is 1.80%

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2.(5pt) Suppose that the spot exchange rate of EUR is 1.10505 USD for 1 Euro. Suppose that the 3 months USD interest rate is 1.80% annualized and Euro interest rate is negative 0.37% annualized (now rates that used here are continuously compounded). What is the 3 month forward exchange rate? What does it mean for interest rate to be negative

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