Business, 25.11.2020 14:00, nails4life324

A European investor can earn a 4.75 percent annual interest rate in Europe or 2.75 percent 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 European investments?

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A European investor can earn a 4.75 percent annual interest rate in Europe or 2.75 percent per year...