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Question 27 (3.03 points) Assume the following information is available for the U.S. and Europe: U.S. Europe Nominal one-year interest rate 2.00% 2.25% Expected inflation

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Question 27 (3.03 points) Assume the following information is available for the U.S. and Europe: U.S. Europe Nominal one-year interest rate 2.00% 2.25% Expected inflation 1.75% 1.90% Spot rate $1.1900/euro What shall the one-year forward rate for euro be if the interest rate parity holds? $1.1882/euro. $1.1871/euro. 7 $1.1918/euro. 30 $1.1929/euro

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