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What is the implied forward rate

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Reference no: EM132465646

Problem: The following information has been collected from the respective areas:

Assumptions London New York

Spot exchange rate ($/€) 1.3264 1.3264

One-year Treasury bill rate 3.7% 4.33%

Expected inflation rate Unknown 1.250%

Given this information what is the implied forward rate ($/€)?

Answer as a percentage, use three decimal places.

Reference no: EM132465646

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