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What should the one-year forward rate of the euro be

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Reference no: EM132775192

Problem 1: Assume that the spot rate of the Euro is $1.31/€, the U.S. one-year interest rate is 4%, and the European one-year interest rate is 6%. What should the one-year forward rate of the Euro be?

A.$1.1931/€
B.$1.3425/€
C.$1.2853/€
D.$1.1434/€

Reference no: EM132775192

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