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Question 1 Suppose the annual interest rates are 6 percent in Mexico and 2 percent in Canada. The current value of the exchange rate is

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Suppose the annual interest rates are 6 percent in Mexico and 2 percent in Canada. The current value of the exchange rate is 16 Mexican Pesos per Canadian Dollar. What must be the exchange rate in a year from now, such that interest rate parity holds? A. 16.777 Peso per Dollar O B. 16.950 Peso per Dollar O C. 17.255 Peso per Dollar O D. 16 Peso per Dollar O E. 16.627 Peso per Dollar

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