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Let us assume that IRP (interest rate parity) theory applies. The one-year nominal interest rate in Germany is 4%, whereas in United States it is

Let us assume that IRP (interest rate parity) theory applies. The one-year nominal interest rate in Germany is 4%, whereas in United States it is 7%. The spot rate for the US dollar is 0.77. If you purchase a one-year forward contract today with 10 000 US dollars, how many euros will you need in one year to fulfill your forward contract?

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