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a. A WORK IT OUT LaunchPad | interactive activity u er FX 016 V Consider a Dutch investor with 1,000 euros to place in a

a. A WORK IT OUT LaunchPad | interactive activity u er FX 016 V Consider a Dutch investor with 1,000 euros to place in a bank . e deposit in either the Netherlands or Great Britain. The (one-year) b. I 892 d 538 interest rate on bank deposits is 1% in Britain and 5% in the Netherlands. The (one-year) forward euro-pound exchange rate P 522 is 1.65 euros per pound and the spot rate is 1.5 euros per pound. C. I 86 Answer the following questions, using the exact equations for uncovered interest parity (UIP) and covered interest parity (CIP) a 015 as necessary. ge a. What is the euro-denominated return on Dutch deposits for 8. Co this investor? cur for What +b

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