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The spot exchange rate is $1.50 per . One year ahead forward rate is $1.45 per . If the interest rate in the US is
The spot exchange rate is $1.50 per . One year ahead forward rate is $1.45 per . If the interest rate in the US is 2% what will the interest rate in UK that will eliminate all arbitrage opportunities?
| 4.56% | ||
| 5.12% | ||
| 5.52% | ||
| 5.75% |
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