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QUESTION
Assume that the interest rate in the home country of Currency X is a much higher interest rate than the U. interest rate. According to interest rate...
Assume that the interest rate in the home country of Currency X is a much higher interest rate than the U.S. interest rate. According to interest rate parity, the forward rate of Currency X:A ) should exhibit a discount.B ) should exhibit a premium.C ) should be zero (i.e., it should equal its spot rate).B or C
