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Describe the interest rate parity

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Question: Interest Rate Parity. Go to the Financial Times site at www.ft.com, and find the current exchange rate between the U.S. dollar and the euro. Next, find the U.S. dollar LIBOR and the Euro LIBOR interest rates. What must the one-year forward rate be to prevent arbitrage? What principle are you relying on in your answer?

Reference no: EM131733837

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