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Suppose that the oneyear interest rate is 5.0 percent in the United States. The spot exchange rate is $120/ and the one year forward exchange

Suppose that the oneyear interest rate is 5.0 percent in the United States. The spot exchange rate is $120/ and the one year forward exchange rate is $1.16/ What must the one year interest rate be in the euro zone to avold arbittage oppoitunibes? Musitiple Chioico 6094

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