Question: Determine for each, whether the interest parity condition holds or not, if Ee$/euro = 1.10 Interest Rate for the Dollar, Interest Rate for the Euro

Determine for each, whether the interest parity condition holds or not, if Ee$/euro = 1.10

Interest Rate for the Dollar, Interest Rate for the Euro R$ R

Interest Rate for the Dollar, Interest Rate for the Euro R$ R 0.04 0.07 0.08 0.09 0.2 0.1 0.12 0 0.02 0.08 0.04 0.1 0 0.04 Exchange Rate Es/ 1.037 0.99 0.948 1.047 1 0.99 0.948

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