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Suppose that the one-year interest rate is 2.5 percent in the United States and 1.5 percent in France (eurozone), and the spot exchange is

Suppose that the one-year interest rate is 2.5 percent in the United States and 1.5 percent in France (eurozone), and the spot exchange is $1.15/. What must the one-year forward exchange rate be to avoid an arbitrage opportunity? 1.1385 1.1388 1.1613 1.1964

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