Multiple Choice
Suppose that the one-year interest rate is 5.0 percent in the United States and 3.5 percent in Germany, and the one-year forward exchange rate is $1.16/€. What must the spot exchange rate be?
A) $1.1768/€
B) $1.1434/€
C) $1.12/€
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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