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6. Assume that annual interest rate in the United States is 4 % while interest rate in the France is 6 %. According to IRP;

6. Assume that annual interest rate in the United States is 4 % while interest rate in the France is 6 %. According to IRP; a) What should the forward rate premium or discount of the euro be? b) If the euros spot rate is $1.10, what should the 3-month forward rate of the euro be?

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