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12)As of today, the spot exchange rate is 1.00 = $1.50 and the rates of inflation expected to prevail for the next year in the
12)As of today, the spot exchange rate is 1.00 = $1.50 and the rates of inflation expected to prevail for the next year in the U.S. is 2 percent and 5 percent in the euro zone. What is the one-year forward rate that should prevail? A) 1.00 = $1.6157 B) 1.00 - $1.4571 C) $1.00 1.03 - 1.60 x 1.02 D) 16157 - $1.00
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