Covered Interest arbitrage Suppose that the one-year interest rate is 5.0 percent in the United States, the

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Covered Interest arbitrage

Suppose that the one-year interest rate is 5.0 percent in the United States, the spot exchange rate is $1.20/, and the one-year forward exchange rate is $1.16/. What must one-year interest rate be in the euro zone?

Posted Date: Jun 09, 2024 07:31 PM

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Covered Interest arbitrage Suppose that the one-year interest rate is 5.0 percent in the United States, the

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