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Use the following information. Your home currency is VND. 3-month US Treasury bill's rate is 4%. 3-month Vietnamese default-free security's rate is 12%. The spot

Use the following information. Your home currency is VND. 3-month US Treasury bill's rate is 4%. 3-month Vietnamese default-free security's rate is 12%. The spot exchange rate is: 1 USD ($) = 23,000 VND.

a) If the IRP holds, what is 3-month forward exchange rate?

b) If 1 euro = 24,610 VND, what is the cross exchange rate between USD ($) and euro?

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