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Define each of the following theories accompanied by equations. Hypothetical examples are required. a. Interest rate parity. b. Expectations theory of forward rates. c. Purchasing

Define each of the following theories accompanied by equations. Hypothetical examples are required.

a. Interest rate parity.

b. Expectations theory of forward rates.

c. Purchasing power parity.

d. International capital market equilibrium (relationship of real and nominal interest rates in different countries).

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