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Question 5 1 pts The one-year risk-free rate in the U.S. is 3.54 percent and the one-year risk-free rate in Mexico is 5.54 percent. The
Question 5 1 pts The one-year risk-free rate in the U.S. is 3.54 percent and the one-year risk-free rate in Mexico is 5.54 percent. The one-year forward rate between the Mexican peso and the U.5. dollar is MXN12.3075. What is the spot exchange rate? Assume interest rate parity holds. MXN18.068/8 O MXN12.301/8 MXN13 938/$ MXN12.53975
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