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Business, 27.10.2020 18:40 marxusalexander6552

Suppose that S = $1.1045/€. The annualized risk-free interest rates are 6% and 3% in the U. S and Germany, respectively. The inflation rate in the US is 2.5%. Find the exact expected exchange rate for the euro in one year. Do not write any symbol. Make sure to round your answers to the nearest 10000th decimal points. For example, write 1.2345 for $1.2345/€.

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Suppose that S = $1.1045/€. The annualized risk-free interest rates are 6% and 3% in the U. S and Ge...
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