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Suppose that the one-year interest rate is 7.08% in Italy, the spot exchange rate is $1.4744/1.00, and the one-year forward exchange rate is $1.4321/1.00. Based

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Suppose that the one-year interest rate is 7.08% in Italy, the spot exchange rate is $1.4744/1.00, and the one-year forward exchange rate is $1.4321/1.00. Based on interest rate parity, what must the one-year interest rate be in the United States? 2.954% 18.745% 14.545% 10.243% 4.008% 9.291%

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