Expected Spot Rates Suppose the spot exchange rate for the Hungarian forint is HUF 206. The inflation

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Expected Spot Rates Suppose the spot exchange rate for the Hungarian forint is HUF 206.

The inflation rate in the United States is 2.8 percent per year and is 3.7 percent 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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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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