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Suppose you observe a spot exchange rate of $2.00/E. If interest rates are 7 percent APR in the U.S. and 3 percent APR in the

Suppose you observe a spot exchange rate of $2.00/E. If interest rates are 7 percent APR in the U.S. and 3 percent APR in the U.K., what is the no-arbitrage 1-year forward rate? $2.1600/E $1.8899/ $2.1176/E $0.4642/E $2.0777/E

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