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Please explain in simple English and show the formula Suppose that the one-year interest rate is 5.0 percent in the United States and 6 percent
Please explain in simple English and show the formula
Suppose that the one-year interest rate is 5.0 percent in the United States and 6 percent in Germany, and the one-year forward exchange rate is $1.16/. What must the spot exchange rate be? Select one: a. $1.171/ O b. $1.1434/ O c. $1.1768/ O d. $1.1887Step by Step Solution
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International Finance Theory And Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J Melitz,
11th Edition
013451954X, 9780134519548
