7) -(6 pts) Assume the following information: Current spot rate of Euro $1.156/1 Euro 1-year...
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7) -(6 pts) Assume the following information: Current spot rate of Euro $1.156/1 Euro 1-year forward rate of Euro $1.175/1 Euro 1-Year interest rate in U.S. 5.2% per year 1-Year interest rate in Euro 4.3% per year 0 From a graphical analysis viewpoint of the Interest Rate Parity Condition, does this situation Lie above the IRP Line a. b. Lie on the IRP Line C. Lie below the IRP Line Pick either A, B or C
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