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Assume that you are a foreign exchange trader in the US, and that interest rate...

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Accounting

Assume that you are a foreign exchange trader in the US, and that interest rate parity holds. Fill in the blanks below. Hint: use the formula for the interest parity condition presented in Ch. 3. Important: Round off your answers to two decimal places (e.g. 0.02, 1.00, etc.) Failure to round off correctly may result in Canvas marking your answer wrong. Case Today's Dollar/Euro Exchange Rate (E$/) Expected Dollar/Euro Exchange Rate (Ee$/) Interest Rate on Euro Deposits (R ) Interest Rate on US Deposits (R$)

A 1.00 1.10 0.05

B 1.00 0.07 0.07

C 0.80 0.88 0.13

D 1.20 0.01 0.21

E 1.50 1.35 0.11

F 0.90 0.94 0.06

G 0.50 0.02 0.12

H 1.00 1.02 -0.01

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