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Assume that the Swiss franc has an annual interest rate of 8% and is expected to appreciate by 6% against the dollar. From a U.S.

Assume that the Swiss franc has an annual interest rate of 8% and is expected to appreciate by 6% against the dollar. From a U.S. perspective, the effective financing rate from borrowing francs is:

2%

14.48%

1.52%

1.72%

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