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Assume the following information: U.S. deposit rate for 1 year = 11%. U.S. borrowing rate for 1 year = 12%. Swiss deposit rate for 1

Assume the following information: U.S. deposit rate for 1 year = 11%. U.S. borrowing rate for 1 year = 12%. Swiss deposit rate for 1 year = 8%. Swiss borrowing rate for 1 year = 10%. Swiss forward rate for 1 year = $0.40. Swiss franc spot rate = $0.39. Also assume that a U.S. exporter denominates its Swiss exports in Swiss francs and

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