According to covered interest rate parity what should the
Suppose the following data:
12 month interest rate in Euro Area = 3.6%
12 month interest rate in US = 1.5%
spot exchange rate: $ 1.35 = €1
According to covered interest rate parity, what should the 12-month forward rate be?
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suppose the following data12 month interest rate in euro area 3612 month interest rate in us 15spot exchange rate
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