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Continued from above, what must the spot rate of the Mexican peso be in one year for Julia Foster's strategy to be successful? ( Hint:
Continued from above, what must the spot rate of the Mexican peso be in one year for Julia Foster's strategy to be successful? Hint: You will find the cutoff interest rate using the International Fisher Effect. Rounded the answer to decimal points.
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As long as the spot rate is below $ per Mexican peso, Julia Foster's strategy can be successful.
As long as the spot rate is above $ per Mexican peso, Julia Foster's strategy can be successful.
As long as the spot rate is above $ per Mexican peso, Julia Foster's strategy can be successful.
As long as the spot rate is below $ per Mexican peso, Julia Foster's strategy can be successful.
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