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Suppose that the one - year interest rate is 5 . 4 % in the United States; the spot exchange rate is $ 1 .

Suppose that the one-year interest rate is 5.4% in the United States; the spot exchange rate is $1.19/, and the one-year forward exchange rate is $1.26. What must be the one-year rate for Eurozone for the IRP to be preserved, and for there to be no arbitrage opportunities?
4.576%
3.928%
5.614%
7.246%
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