Suppose the 1-year risk-free rate of return in the U.S. is 2% and the 1-year...
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Suppose the 1-year risk-free rate of return in the U.S. is 2% and the 1-year risk-free rate of return in Mexico is 8%. The current exchange rate is 1 peso = U.S. $.051. A 1-year future exchange rate of for the peso would make a U.S. investor indifferent between investing in the U.S. security and investing in the Mexican security. Multiple Choice 1.6037 0.02001 1.7500 0.02300 0.01250
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