A european investor can earn a 4.75 annual interest rate in, Ask an Expert

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A European investor can earn a 4.75% annual interest rate in Europe or 2.75% per year in the United States. If the spot exchange rate is $1.58 per euro, at what one-year forward rate would an investor be indifferent between the U.S. and Japanese investments?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M942097

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