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One year rates are 2.5% in Japan and 4.1% in France. inflation is 2.0% in Japan and 3.2% in France. The spot rate quoted is

One year rates are 2.5% in Japan and 4.1% in France. inflation is 2.0% in Japan and 3.2% in France. The spot rate quoted is from the table above. Does interest parity hold? Compare it to the answer you calculate. The forward rate your broker is quoting you is 110.000 yen/euro. The current Yen/Euro exchange rate is 108.0160.

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