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Suppose you are in euro zone and suppose that the current spot exchange rate is = $1.5 and = $1.20 The one year interest rate

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Suppose you are in euro zone and suppose that the current spot exchange rate is = $1.5 and = $1.20 The one year interest rate is %5 in Euro and %15.5 in U.K. You can borrow 10,000 or the equivalent pound amount at the current spot exchange rate? Note: Suppose that the one year forward exchange rate is /=0.8799. Q1: Find IRP from above example

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