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Can someone help me with this question? If annualized interest rates in the U. S. and Euro-zone are 3% and 6%, respectively, and the spot
Can someone help me with this question?
If annualized interest rates in the U. S. and Euro-zone are 3% and 6%, respectively, and the spot value of euro is $ 1.2500, then at what 180 - day forward rate will interest rate parity hold?
a. 1.2870
b. 1.1150
c. 1.2313
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