What is the spot exchange rate

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Reference no: EM133433811

Question: The one-year risk-free rate in the U.S. is 2.74 percent and the one-year risk-free rate in Mexico is 4.44 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.24/$. What is the spot exchange rate? Assume interest rate parity holds.

Reference no: EM133433811

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