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What should be expected forward premium or forward discount

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Reference no: EM133177121

Question - Using below information for question- Current spot rate EUR1 = USD 1.55

Annual interest rate in EU: 4%

Annual interest rate in US: 1%

Forward rate of EUR1: 1.7

Required - Applying IRP theory, what should be the expected forward premium or forward discount of EUR.

Reference no: EM133177121

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