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(a) If the U.S. risk-free interest rate is 10 percent per annum and the Eurozone risk-free interest rate is 14 percent per annum, is the

(a) If the U.S. risk-free interest rate is 10 percent per annum and the Eurozone risk-free interest rate is 14 percent per annum, is the euro expected to appreciate or depreciate against the U.S. dollar? By how much?

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