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Suppose six-month interest rate is quoted as 3.75% per annum in Germany and quoted as 5.05% per annum in the U.S. According to interest rate

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Suppose six-month interest rate is quoted as 3.75% per annum in Germany and quoted as 5.05% per annum in the U.S. According to interest rate parity, the U.S. dollar has a 6-month forward premium of 1.3%. the euro has a 6-month forward premium of 0.65%. the euro has a 6-month forward premium of 1.3%. the U.S. dollar has a 6-month forward premium of 0.65%

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