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Assume that you borrow USD 1.000.000 for six months, and you lend EUR 1.500.000an initially...

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Finance

Assume that you borrow USD 1.000.000 for six months, and you lend EUR 1.500.000an initially equivalent amountfor six months, at per annual rates of 6% and 8%, respectively, with a right of offset. What is the equivalent spot and forward exchange rate? (10 points)

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