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What is the expected spot rate in 1 year? Explain which two international parity conditions you could use to reach this result. According to the

  1. What is the expected spot rate in 1 year? Explain which two international parity conditions you could use to reach this result.
  2. According to the interest Rate Parity condition ,what is the 1 year forward exchange rate? Is there an arbitrage opportunity? Why?

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