Spot versus Forward Rates Suppose the spot and threemonth forward rates for the Indian rupee are R68.81/

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Spot versus Forward Rates Suppose the spot and threemonth 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 be your estimate regarding the effective annual inflation rate differential between the Eurozone and India?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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