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Please show Graph for (b) On interest rate parity 1. Consider this: the interest rate in Germany is 3% and the interest rate in Japan
Please show Graph for (b)
On interest rate parity 1. Consider this: the interest rate in Germany is 3% and the interest rate in Japan is 0%. The exchange rate denoted by Et is 180Y/Euro. The expected exchange rate at year end is 175Yen Euro. (a) Where should I invest my money, say, 100 Euro? (10 points) Rg=3%
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