Business, 24.03.2020 20:57 dannyhouseman55

9. Current one-year interest rates in Europe is 4 percent, while one-year interest rates in the U. S. is 2 percent. You convert $200,000 to euros and invests them in France. One year later, you convert the euros back to dollars. The current spot rate of the euro is $1.20. a. According to the IFE, what should the spot rate of the euro in one year be? b. If the spot rate of the euro in one year is $1.12, what is your percentage return from your investment? c. If the spot rate of the euro in one year is $1.31, what is your percentage return from your investment? d. What must the spot rate of the euro be in one year for your strategy to be successful?

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9. Current one-year interest rates in Europe is 4 percent, while one-year interest rates in the U. S...

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