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5) Assume that the expected spot rate for euros (in terms of dollars) = $1.25/, the current interest rate on euro deposits is 5.5%, and
- 5) Assume that the expected spot rate for euros (in terms of dollars) = $1.25/, the current interest rate on euro deposits is 5.5%, and the current interest rate on dollar deposits is 4.5%. If the UIP holds the spot rate is
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