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Given the information below, calculate the interest on Euro assets assuming that the uncovered interest parity holds. The spot exchange rate E$/ =1.6 Dollar

Given the information below, calculate the interest on Euro assets assuming that the uncovered interest parity holds. The spot exchange rate E$/ =1.6 Dollar interest rate Euro interest rate Expected future spot exchange rate Es/ 10% 12% 8% Rs XI X2 X3 Re 1.64 1.512 1.600

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