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You have $27,000 to invest. The spot rate for the euro is $1.06 per euro, while the 180 -day forward rate is $1.07 per euro.
You have $27,000 to invest. The spot rate for the euro is $1.06 per euro, while the 180 -day forward rate is $1.07 per euro. The six-monthly interest rate in the euro area is 7% and in the U.S. it is 3%. Part 1 1. Attempt 4/10 for 10 pts. What is your risk-free rate of return (yield) from exploiting the higher interest rate in the euro area
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