Question: QUESTION 1 32 points Save Answer Assume that you are a foreign exchange trader in the US, and that interest rate parity holds. Fill in

QUESTION 1 32 points Save Answer Assume that you are a

QUESTION 1 32 points Save Answer Assume that you are a foreign exchange trader in the US, and that interest rate parity holds. Fill in the blanks below. Hint: use the formula for the interest parity condition presented in Ch. 3. Important: Round off your answers to two decimal places (e.g. 0.02, 1.00, etc.) Today's Expected Dollar/Euro Exchange Interest Rate on Interest Rate on US Case Dollar/Euro Exchange Rate (Ese) Rate (Esie) Euro Deposits (R) Deposits (R$) A 1.00 1.10 0.05 B 1.00 0.07 0.07 C 0.80 0.88 0.13 D 1.20 0.01 0.21 E 1.50 1.35 0.11 F 0.90 0.94 0.06 G 0.50 0.02 0.12 H 1.00 1.02 -0.01

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