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Suppose you observe a spot exchange rate of $1.0500/?. If interest rates are 5% APR (Annual Percentage Rate) in the U.S. and 3% APR in

Suppose you observe a spot exchange rate of $1.0500/â?¬. If interest rates are 5% APR (Annual Percentage Rate) in the U.S. and 3% APR in the euro zone, what is the no-arbitrage 1-year forward rate? ...

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