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Assume 1 euro = $1.25 in the 180-day forward market and the 180-day risk-free rate is 7% in the U.S. and 5% in France. Does

Assume 1 euro = $1.25 in the 180-day forward market and the 180-day risk-free rate is 7% in the U.S. and 5% in France. Does interest rate parity hold?

Spot rate = $1.24

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