Uncovered interest parity problem suppose that a 30 day, Ask an Expert

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Uncovered Interest Parity Problem: Suppose that a 30 day deposit has a local current interest rate of 1% in Europe and 2% in the United States. The current spot rate is E$/€=1.1.

i) If uncovered interest parity were to hold, what does the market expect the spot rate to be in 30 days?

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Financial Management, Finance

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