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Exercise 10.3 (Interest-Rate Differentials) Suppose that the euro-dollar spot exchange rate, Et , is 1.5 dollars per euro, that the forward exchange rate, Ft ,

Exercise 10.3 (Interest-Rate Differentials) Suppose that the euro-dollar spot exchange rate, Et , is 1.5 dollars per euro, that the forward exchange rate, Ft , is 2 dollars per euro, that the nomi...

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