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5. (10 pts) This question is about covered interest parity. Suppose that a 30 day deposit has a local current interest rate of 5% in

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5. (10 pts) This question is about covered interest parity. Suppose that a 30 day deposit has a local current interest rate of 5% in England and 3 % in the United States. The current spot rate is Es/= 1.25. If uncovered interest parity were to hold, what does the market expect the spot rate to be in 30 days? Explain your

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