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Suppose that the one-year interest rate is 3.5 percent in the United States; the spot exchange rate is $1.16/; and the one-year forward exchange

Suppose that the one-year interest rate is 3.5 percent in the United States; the spot exchange rate is $1.16/; and the one-year forward exchange rate is $1.18/. What must the one-year interest rate be in the eurozone to avoid arbitrage? O 1.72% 1.75% 4.79% O 5.28%

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