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Suppose that the one-year interest rate is 6.81% in the United States, the spot exchange rate is $1.4386/e1.00, and the one-year forward exchange rate is

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Suppose that the one-year interest rate is 6.81% in the United States, the spot exchange rate is $1.4386/e1.00, and the one-year forward exchange rate is $1.4084/El.00. Based on interest rate parity, what must the oneyear interest rate be in the euro zone? 2.144% 15.652% 12.285% 9.100% 4.568% 8.341% Four days ago you entered into a futures contract to buy 125,000 at $1.46 per euro. The spot exchange rate when you entered the contract was $1.50. Your initial performance bond was $5,600 and your maintenance level was $2,200. Over the past four days (in order) the contract has settled at $1.45,$1.41,$1.48, and $1.43. How much in total have you made or lost? made $8,750 lost $10,000 made $10,000 lost $3,750 made $3,750 lost $8,750

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