The one-year risk-free rate in the U.S. is 3.70 percent and the one-year risk-free rate...
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The one-year risk-free rate in the U.S. is 3.70 percent and the one-year risk-free rate in Mexico is 5.76 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.31/$. What is the spot exchange rate? Assume interest rate parity holds.
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