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Help Question 9 0/1 pts Suppose that the one-year forward dollar price of a euro is $1.34. Further, assume that the spot exchange rate is
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Question 9 0/1 pts Suppose that the one-year forward dollar price of a euro is $1.34. Further, assume that the spot exchange rate is $1.26 per euro, and that the interest rate on euro deposits is 9 percent. What is the interest rate on dollar deposits that would make interest parity hold? Round to two decimal places. Enter a number like 2% as "2.00" and not "0.02." Note: you may end with a number that doesn't seem "realistic" and that's OK for the purposes of this question. 2.49
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