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Assume the inflation rate in the U.S. is 1.02 percent. The spot rate for a foreign currency is 1.4251 while the 1-year forward rate is

Assume the inflation rate in the U.S. is 1.02 percent. The spot rate for a foreign currency is 1.4251 while the 1-year forward rate is 1.4375. What is the approximate rate of inflation in the foreign country?

2.15%

2.01%

1.89%

1.82%

1.78%

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