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Assume: (1) the UAE annual interest rate = 2%: (2) Indian annual interest rate = 6%; and (3) The spot rate for the INR 18.31/AED

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Assume: (1) the UAE annual interest rate = 2%: (2) Indian annual interest rate = 6%; and (3) The spot rate for the INR 18.31/AED 1 (INR 18.31 = AED 1). a) Is the INR (Indian currency) going to appreciate or depreciate against AED? b) What is the expected percentage of appreciation or depreciation of the INR (Indian currency) over the period? c) What would the 1-year forward rate be

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