Question
X 0 USD/EUR = 1.05; r USD = 2%; r EUR = 7%; E (X 1 USD/EUR ) = 1.16; According to the UIRP, the
X0USD/EUR = 1.05; rUSD = 2%; rEUR = 7%; E (X1USD/EUR) = 1.16; According to the UIRP, the short-run intrinsic value of the EUR is ________ ; this means that the EUR is currently ____________ relative to the USD.
a) 1.1982; overvalued
b) 1.1982; undervalued
c) 1.2169; overvalued
d) 1.2169; undervalued
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Unlock The Potential Of Forex An Essential Guide To Forex Trading
Authors: Enoch Grennan
1st Edition
979-8388679659
