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US one year interest rate is 6% annual and EU one year interest rate is 8% annual. Currently the spot rate in the market is

US one year interest rate is 6% annual and EU one year interest rate is 8% annual. Currently the spot rate in the market is $1.12/Euro. According the International Fisher Effect, what is your prediction about the value of euro against US$ after one year. Calculate the future spot rate in a year.

$1.019/euro

$1.096/euro

$1.089/euro

$1.093/euro

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