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The U S financing rate is 6 percent and the financing rate in France is 7 percent. The expected cost of financing in dollars and

The U S financing rate is 6 percent and the financing rate in France is 7 percent. The expected cost of financing in dollars and financing in euros next year would be the same if the euro is expected to:

A) Appreciate by 0.935 percent

B) Depreciate by 0.935 percent

C) Depreciate by 0.943 percent

D) Appreciate by 0 .943 percent

E) None of the above

Please show how answer is derived.

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