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QUESTION 7 Suppose that the one year interest rate is 4.0 percent in the Italy, the spot exchange rate is $1.60 , and the one-year

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QUESTION 7 Suppose that the one year interest rate is 4.0 percent in the Italy, the spot exchange rate is $1.60 , and the one-year forward exchange rate is $1.58 . What must one-year interest rate be in the United States? 2% 2.7% 5.32% None of the above

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