Multiple Choice
Suppose that the one-year interest rate is 3.0 percent in the Italy, the spot exchange rate is $1.20/€, and the one-year forward exchange rate is $1.18/€. What must one-year interest rate be in the United States?
A) 1.2833%
B) 1.0128%
C) 4.75%
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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