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29 Suppose that the one-year interest rate is 5.0 percent in the United States. The...

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29 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 opportunities? 01:36:52 Multiple Choice 5.0% 6.09% O 8.62% none of the options

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