Question 26 (5 points) Consider the following table of exchange rates, prices and one-year interest...
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Question 26 (5 points) Consider the following table of exchange rates, prices and one-year interest rates for the last year US dollar per euro S/ 1.04 Euro interest rates 5% US interest rates 3% What is the expected exchange rate according to uncovered interest rate parity (UIP)? If this year the exchange rate is $/ 1.25, does the UIP hold? 01.02, Yes UIP holds O 1.02, No VIP does not hold O 0.98, No UIP does not hold 0.98, Yes UIP holds
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