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Suppose that the one - year U . S . interest rate is 8 % and the equivalent one - year India interest rate is

Suppose that the one-year U.S. interest rate is 8% and the equivalent one-year India interest
rate is 12%. According to approximate covered interest parity, there is:
Forward discount on dollar.
Forward premium on dollar.
Forward premium for Indian rupee.
Forward flat on dollar.
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