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need help Question 20 (4 points) Suppose that the one-year interest rate is 6.64% in the United States, the spot exchange rate is $1.5863/1.00, and
need help
Question 20 (4 points) Suppose that the one-year interest rate is 6.64% in the United States, the spot exchange rate is $1.5863/1.00, and the one-year forward exchange rate is $1.5455/1.00. Based on interest rate parity, what must the one-year interest rate be in the euro zone? 9.455% 3.897% 8.638% 2.640% 15.979% 13.237% Question 21 (4 points) Suppose that the one-year interest rate is 3.09% in the United States, the spot exchange rate is $1.4276/1.00, and the one-year forward exchange rate is $1.4459/1.00. Based on interest rate parity, what must the one- year interest rate be in the euro zone Step by Step Solution
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