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USING YOUR PREVIOUS ANSWERS and a bit more work, find the 1-year forward exchange rate in $ per € that satisfies IRP from the perspective of a customer that borrowed $1m traded for € at the spot and invested at i€ = 4%.
Capital
Financial resources or assets owned by an individual or business, used to fund operations, invest in business ventures, or acquire assets.
Liabilities
Monetary commitments or liabilities that a business is responsible for repaying to others in the future.
Revenue
The total income generated from normal business operations, including sales of goods and services before any expenses are deducted.
Expanded Accounting Equation
An extension of the basic accounting equation that includes components such as owner's equity, retained earnings, and dividends.
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