Suppose the spot and six-month forward rates

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Suppose the spot and six-month forward rates on the Norwegian krone are Kr 5.83 and Kr 5.98, respectively. The annual risk-free rate in the United States is 3.63 percent, and the annual risk-free rate in Norway is 5.33 percent.

The six-month forward rate on the Norwegian krone would have to be Kr/$ ........... to prevent arbitrage.

Reference no: EM13765056

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