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An investment firm is looking at two options, one domestic in the US and another in Europe. The firm plans to invest $155,000. In
An investment firm is looking at two options, one domestic in the US and another in Europe. The firm plans to invest $155,000. In the US, the current interest rate is 4.35%, while in Europe it is 6.75%. The firm believes that the future expected exchange rate in one year will be $1 US buys 2.10 Euros. If the firm claims that the future value in one year of both investments is the same, then this implies the exchange rate today must be E = O 2.21 O 2.14 02.05 O 2.01
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