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4. Interest Parity II Suppose that the interest rate in the U.S. (in dollars) is i = 0.02 and that the current spot rate is

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4. Interest Parity II Suppose that the interest rate in the U.S. (in dollars) is i = 0.02 and that the current spot rate is E = 1.14 a. If the interest rate in Europe is .01, what is the forward rate? b. If the expected future spot rate is E = 1.1, what should the interest rate in Europe to be? Again, ignore the risk premium, but this time use the exact formula

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