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Business, 01.03.2021 21:50 cristinaarmijo1

Suppose that the one-year interest rate is 3.0 percent in the Italy, the spot exchange rate is $1.20/€, and the one-year forward exchange rate is $1.18/€. What must one-year interest rate be in the United States? a. 1.0128%
b. 4.75%
c. 1.2833%
d. None of the answers provided.

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Suppose that the one-year interest rate is 3.0 percent in the Italy, the spot exchange rate is $1.20...
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