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Question 20 (3.33 points) Assume the following information is available for the U.S. and Europe: U.S. Europe Nominal one-year interest rate 2% Spot rate $1.1300/euro

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Question 20 (3.33 points) Assume the following information is available for the U.S. and Europe: U.S. Europe Nominal one-year interest rate 2% Spot rate $1.1300/euro 6% What shall the one-year forward rate for euro be if the interest rate parity holds? $1.1743/euro $1.0874/euro $1.1085/euro $1.1519/euro

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