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Does the Interest Rate Parity Hold in Each of the Following

Question 125

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Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium.
A.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
B.Rt = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
C.Rt = 7, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
D.Rt = 8, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
E.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 4,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
F.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 5,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
G.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 6,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
H.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 6, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
I.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 7, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
J.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 8, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 7
K.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 8
L.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 9
M.Rt = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 3,Et = 5, Does the interest rate parity hold in each of the following cases? In case it does not hold,calculate the risk premium. A.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 7 B.R<sub>t</sub> = 6, = 3,E<sub>t</sub> = 5, = 7 C.R<sub>t</sub> = 7, = 3,E<sub>t</sub> = 5, = 7 D.R<sub>t</sub> = 8, = 3,E<sub>t</sub> = 5, = 7 E.R<sub>t</sub> = 5, = 4,E<sub>t</sub> = 5, = 7 F.R<sub>t</sub> = 5, = 5,E<sub>t</sub> = 5, = 7 G.R<sub>t</sub> = 5, = 6,E<sub>t</sub> = 5, = 7 H.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 6, = 7 I.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 7, = 7 J.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 8, = 7 K.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 8 L.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 9 M.R<sub>t</sub> = 5, = 3,E<sub>t</sub> = 5, = 10 = 10

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