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Suppose you observe a spot exchange rate of $1.0500/. If interest rates are 3 percent APR in the U.S. and 5 percent APR in the

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Suppose you observe a spot exchange rate of $1.0500/. If interest rates are 3 percent APR in the U.S. and 5 percent APR in the euro zone, what is the no-arbitrage 1-year forward rate? Select one: 0 1.0704/9 1.0300/$ O $1.0300/ none of these answers O $1.0704/

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