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Suppose that the nominal risk-free interest rate in the US is 5% while the nominal risk-free interest rate in the Euro Zone is 2.5%.The spot

  1. Suppose that the nominal risk-free interest rate in the US is 5% while the nominal risk-free interest rate in the Euro Zone is 2.5%.The spot exchange rate between the $ and the euro is 1.0 euro=$1.1874.Compute the 1 year forward (F1) exchange rate implied in this information.

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