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Assume that the interest rate in country X is lower than the U.S. interest rate. According to Interest Rate Parity Theory, the forward rate of

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Assume that the interest rate in country X is lower than the U.S. interest rate. According to Interest Rate Parity Theory, the forward rate of currency X with respect to the dollar should: O Exhibit a discount. O Remain constant. O Exhibit a premium. O Be unrelated to the spot. O Be equal to the spot rate

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