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Assume USDTRY spot is 18.65 today. Further assume that the 6-month USD interest rate (annualized) is at 3% and 6-month TRY interest rate (annualized) is

Assume USDTRY spot is 18.65 today. Further assume that the 6-month USD interest rate (annualized) is at 3% and 6-month TRY interest rate (annualized) is at 30% today.

Based on this information, calculate the 6-month USDTRY Forward FX using the Interest rate parity approach. Draw the diagram of alternative ways of reaching the same point if it helps. Pay attention to make sure you get the right direction.

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