According to the interest rate parity condition

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Reference no: EM131870904

True/False/Explain. According to the interest rate parity condition, if the U.S. annual interest rate is 2%, S. Korea’s annual interest rate is 3%, and the won/dollar exchange rate in period 1 is W1100/$1, then investors must be expecting the won/dollar exchange rate to be W1200/$1 one year later.

Reference no: EM131870904

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