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International Parity Conditions On September 5, 2013, the one-year forward premium for the Argentine peso against the U.S. dollar was 39.3%. The spot exchange rate

International Parity Conditions

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On September 5, 2013, the one-year forward premium for the Argentine peso against the U.S. dollar was 39.3%. The spot exchange rate on that day was 5.7088 pesos per dollar. Which of the following is NOT true according to the international parity conditions? The peso was expected to depreciate against the dollar in one year. The real return for peso investment was expected to be higher than that for the dollar. The peso interest rate must be higher than the dollar interest rate. The peso ination rate must be higher than the dollar ination rate. .949 53"!\

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