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If the One-Year Forward Rate for the Dollar Is 0

Question 2

Multiple Choice

If the one-year forward rate for the dollar is 0.80 euro, while the current spot rate is 0.82 euro, the expected percentage change in the euro is ____% to the nearest percentage.


A) 0.03
B) 0.02
C) -0.02
D) None of the above

Correct Answer:

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