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

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Question - 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: EM132780865

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