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Assume the 5-year interest rate in US is 5.5% and the interest rate is 7.5% in Germany. If the current spot rate is $1.03/, what
Assume the 5-year interest rate in US is 5.5% and the interest rate is 7.5% in Germany. If the current spot rate is $1.03/, what is the value of the forward exchange rate that prevents covered interest arbitrage?
0.9377 | ||
0.9564 | ||
0.9832 | ||
0.9914 |
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