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Assume the following information: Mexican one-year interest rate = 9% US one-year interest rate = 4% Peso spot rate = 0.13 $/p Peso forward rate

Assume the following information:

Mexican one-year interest rate = 9%

US one-year interest rate = 4%

Peso spot rate = 0.13 $/p

Peso forward rate = 0.08 $/p

If interest rate parity exists, how much money you can make per each unit.

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