Multiple Choice
If the exchange at time t is Eₜ = €1.2/$. You invest $1 in an euro asset at t,which has an interest of 8%. When the asset expires at t+1,you get paid €________. If Eₜ+1 = €1.02/$,then your rate of return in terms of € is ________%.
A) 1.3;8
B) 1.3;6
C) 1.08;6
D) 1.08;8
Correct Answer:

Verified
Correct Answer:
Verified
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