What is the no-arbitrage one-year forward rate for the euro

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Question 1: Suppose you observe a spot exchange rate of $1.5305/€. If interest rates are 5.5% APR in the U.S. and 10% APR in the euro zone, what is the no-arbitrage 1-year forward rate for the euro in terms of dollars (USD/EUR)? Submit your final answer rounded to two decimal places (Ex. 0.00).

Reference no: EM132917746

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