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Question 8 ( 1 0 points ) : If the interest rate in the United Kingdom is 4 percent, the interest rate in the United

Question 8(10points): If the interest rate in the United Kingdom is 4 percent, the interest rate in
the United States is 7 percent, the spot exchange rate is $1.81, and interest rate parity holds, what
must be the one-year forward exchange rate?
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