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State an example for Interest Rate Parity between three countries, one is the US, and you can choose another two, and compare them in pairs
- State an example for Interest Rate Parity between three countries,
- one is the US, and you can choose another two, and compare them in pairs like we did with exchange rate. Hint: Think international Fisher equation.
I select US, Mexico, and the Euro.
- What are the exchange rate risk in those two countries?
- What are the spot rates with those currencies against the dollar (you can use numbers from your sheet)
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