Multiple Choice
Suppose that the one-year interest rate is 4.0 percent in Italy,the spot exchange rate is $1.60/€,and the one-year forward exchange rate is $1.58/€.What must the one-year interest rate be in the United States?
A) 2%
B) 2.7%
C) 5.32%
D) none of the options
Correct Answer:
Verified
Correct Answer:
Verified
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