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Suppose that the one-year forward dollar price of a euro is $1.37. Further, assume that the spot exchange rate is $1.1 per euro, and that
Suppose that the one-year forward dollar price of a euro is $1.37. Further, assume that the spot exchange rate is $1.1 per euro, and that the interest rate on euro deposits is 6 percent. What is the interest rate on dollar deposits that would make interest parity hold? Round to two decimal places. Enter a number like 2% as "2.00" and not "0.02" Note: you may end with a number that doesn't seem "realistic" and that's OK for the purposes of this question. Question 15 1 pts Suppose that last year, the 12-month interest rates for the Australia and the Greece are 7.1% and 3.9% respectively, and that the Australian dollar price of a euro is $1.49. Given this information, what was the percentage change in the exchange rate over the year? Round to two decimal places. Enter a number like 2% as "2.00" and not "0.02
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