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Question
Suppose that the one-year U.S. interest rate is 7% and the one-year Swedish interest rate is 10%. If the current spot rate is 6.80 Swedish krona per dollar, what must the one-year forward rate (SKr/$) be according to the approximate covered interest parity?
a. 6.596
b. 6.720
c. 7.004
d. 7.276
Answer
This answer is hidden. It contains 1 characters.
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