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Intro The current exchange rate between the dollar and euro is $1.05 per euro. The nominal annual risk-free rate is 1% in the U.S. and
Intro The current exchange rate between the dollar and euro is $1.05 per euro. The nominal annual risk-free rate is 1% in the U.S. and 0.8% in Europe Part 1 Attempt 1/10 for 10 pts. What should be the one-year forward premium according to interest rate parity? 5+ decimals Submit - Attempt 1/10 for 10 pts. Part 2 What should be the one-year forward rate according to interest rate parity (in dollars per euro)? 2+ decimals Submit
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