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If the ratio between direct quote of forward divided by spot exchange rates of US $ over Mexican Peso is 0.95 and the interest rate
If the ratio between direct quote of forward divided by spot exchange rates of US $ over Mexican Peso is 0.95 and the interest rate in the US is 1%, then the interest rate in Mexico is expected to be:
A) -1.2%
B) 6.3%
C) 7.4%
D) 8.2%
E) 9.5%
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