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Question 9: Assume that the one-year interest rates for USD and CHF are: pUSD = 6% and CHF = 2% and that the expected spot

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Question 9: Assume that the one-year interest rates for USD and CHF are: pUSD = 6% and CHF = 2% and that the expected spot rate at t= 1 is E (XHF/USD) = 1.12, and that the current spot rate is = 1.04; by how many percent is the USD overvalued/undervalued according to the UIRP condition? XCHF/USD Undervalued by 10.65% O Undervalued by 7.34% Overvalued by 7.34% Overvalued by 10.65% Question 10 2 pts Question 10: Assume that the NZD is undervalued by 12.44% against the USD. Then the USD is overvalued by how many percent against the NZD? 14.21% 10.12% O 16.78% O 12.55%

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