10. 13. Expected spot rates [LO 21.2] Suppose the spot exchange rate for the Hungarian forint is...
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10. 13.
Expected spot rates [LO 21.2] Suppose the spot exchange rate for the Hungarian forint is HUF 289.97. The inflation rate in Australia will be 2.9 per cent per year. It will be 4.5 per cent in Hungary. What do you predict the exchange rate will be in one year? In two years? In five years? What relationship are you using?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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