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) (5 points) You observe the following: So = Yen 125/$. RUBLE = 230%/YR . So = DM 0.65/ POUND. iDM = 1.2%/YR. FLYR =

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) (5 points) You observe the following: So = Yen 125/$. RUBLE = 230%/YR . So = DM 0.65/ POUND. iDM = 1.2%/YR. FLYR = Yen 125/$ So = RUBLE 1000/$. IXEN =0%/Yr. In equilibrium, the expected spot rate for RUBLE/$ (in 1 YR) expressed as Rubles per Dollar must be Ruble /$ ) (5 points) You observe the following: So = Yen 125/$. RUBLE = 230%/YR . So = DM 0.65/ POUND. iDM = 1.2%/YR. FLYR = Yen 125/$ So = RUBLE 1000/$. IXEN =0%/Yr. In equilibrium, the expected spot rate for RUBLE/$ (in 1 YR) expressed as Rubles per Dollar must be Ruble /$

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