36 Spot versus Forward Rates Suppose the spot and three-month forward rates for the Indian rupee are

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36 Spot versus Forward Rates Suppose the spot and three-month forward rates for the Indian rupee are R68.81/€ and R61.8/€, respectively.

(a) Is the rupee expected to get stronger or weaker?

(b) What would you estimate is the difference between the inflation rates of the Eurozone and India?

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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