Question
1) If the inflation rates in the British pound and the US $ are 4% and 1% respectively, while the exchange rate is 1 pound
1) If the inflation rates in the British pound and the US $ are 4% and 1% respectively, while the exchange rate is 1 pound exchanges for $2, what will the future spot rate be?
2) What is the meaning of the above in the context of PPP?
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Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
