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Business, 10.03.2020 04:36 heyyyyy39

Suppose that the one-year interest rate is 5.0 percent in the United States; the spot exchange rate is $1.20/€; and the one-year forward exchange rate is $1.16/€. What must the one-year interest rate be in the euro zone to avoid arbitrage? A. 5.0% B. 8.62% C. none of the options D. 6.09%

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