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Suppose the spot and six-month forward rates on the Norwegian krone are Nk 5.81 and Nk 5.96, respectively. The annual risk-free rate in the United

Suppose the spot and six-month forward rates on the Norwegian krone are Nk 5.81 and Nk 5.96, respectively.

The annual risk-free rate in the United States is 3.61 percent, and the annual risk-free rate in Norway is 5.31 percent.

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