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The exchange rate in one year will be 105 yen per dollar, the Japanese interest rate is 1%, and the U.S. interest rate is 3%.

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The exchange rate in one year will be 105 yen per dollar, the Japanese interest rate is 1%, and the U.S. interest rate is 3%. What must be the exchange rate today if there are to be no arbitrage opportunities? 110.029 109.079 105.079 107.080

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