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Assume that the spot rate of the euro is $1.05, the one-year U.S. interest rate is 8 percent, and the one-year European interest rate is

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Assume that the spot rate of the euro is $1.05, the one-year U.S. interest rate is 8 percent, and the one-year European interest rate is 1o percent. The forward rate of the euro will be about $ a. 1.03089 b. 1.06911 c. 1.03047 d. 1.06953 e. None of these choices are correct

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