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Assue that a 1 / 5 . firm can invest funds for one year in the United States at 1 2 percent or invest funds

Assue that a 1/5. firm can invest funds for one year in the United States at 12 percent or invest funds in Mexico a 14 percret. The spot rate of the peso is 5.10 while the one-year forward rate of the covered interest arbtrage, what forces should occur?O spot rate of peso increases; forward rate of peso incrcases O spot rate of peso decreases; forward rate of peso decreases spot rate of peso decreases; forward rate of peso increasesO spot rate of peso increases; forward rate of peso decreases

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