Suppose that the one-year interest rate is 5.0 percent in theUnited States and 3.5 percent in Germany,

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Suppose that the one-year interest rate is 5.0 percent in theUnited States and 3.5 percent in Germany, and that the spotexchange rate is $1.12/â?¬ and the one-year forward exchange rate is$1.16/â?¬ 2 answers

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Suppose that the one-year interest rate is 5.0 percent in theUnited States and 3.5 percent in Germany,

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