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5) Eiffel in France will receive TL5 mn in 1 year against exports to Turkey. The annual interest rate in the next 1 year is

5) Eiffel in France will receive TL5 mn in 1 year against exports to Turkey. The annual interest rate in the next 1 year is 5% in Europe and 10% in Turkey. Assume interest rate parity holds. i) Determine the appropriate forward premium or discount on TL? ii) Calculate the s Eiffel will receive next year, assuming spot rate of EURTL is 7?

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