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Suppose the one-year forward euro exchange rate is 126 per

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Suppose the one-year forward $/€ exchange rate is $1.26 per euro and the spot exchange rate is $1.2 per euro. What is the forward premium on euros (the forward discount on dollars)? What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?

Reference no: EM13379005

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