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One year interest rates are currently 330 in the United States and 260 in Euroland The current spot rate between the euro and dollar is 13225 euro What is the expected spot rate in one year

One-year interest rates are currently 3.30% in the United States and 2.60% in "Euroland." The current spot rate 
between the euro and dollar is $1.3225/euro. What is the expected spot rate in one year if the international Fisher 
effect holds?
A) $1.3315/euro
B) $1.3135/euro
C) $1.3225/euro
D) None of the above

Apr 19 2021 View more View Less

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