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5. Suppose the one-year forward $/ exchange rate is $1.26/ and the spot exchange rate is $1.2/. What is the difference between the interest rate

image text in transcribed 5. Suppose the one-year forward $/ exchange rate is $1.26/ and the spot exchange rate is $1.2/. What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no political risk)

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