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Suppose the spot and six-month forward rates on the Norwegian krone are Kr5.61 and Kr5.72, respectively. The annual tisk free rate in Canada is 3

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Suppose the spot and six-month forward rates on the Norwegian krone are Kr5.61 and Kr5.72, respectively. The annual tisk free rate in Canada is 3 percent, and the annual risk-free rate in Norway is 5 percent. The six-month forward rate on the Norwegian krone would have to be Kr/$ to prevent arbitrage. (Do not round

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