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The US Dollar-Euro Spot Exchange Rate Is $1

Question 10

Multiple Choice

The US dollar-euro spot exchange rate is $1.50/€. If the one-year simple interest rate on dollars is 1% and on euro is 2%, what is the one-year forward rate of dollars per euro?


A) 1.4748
B) 1.4853
C) 1.5000
D) 1.5149

Correct Answer:

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