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2. (10 points) Consider a two-period economy under uncertainty, where all accounts are settled in SUSA. Suppose that the current ex- change rate between

2. (10 points) Consider a two-period economy under uncertainty, where all accounts are settled in SUSA. Suppose that the current ex- change rate between CGBP and $US is CI$1.24. The future exchange rate dynamics is represented by the following tree:

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