• Given that annual deposit rates for Dollars and Euros are 6% and 4% respectively for the next 5 years. If the current spot rate of the Euro is $1.4015, obtain the implied rate for the Euro five years from now if International Fisher Equation holds exactly.

a. $1.5415
b. $1.2742
c. $1.4284
d. $1.3750
e. None of the above.

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