18. London and New York. Money and foreign exchange markets in London and New York are very efficient. The following information is available: London New York Spot exchange rate $1.3860/E $1.3860/E One-year treasury bill rate 3.800% 4.20% Expected inflation rate unknown 2.00% a. What do the financial markets suggest for infla- tion in Europe next year? b. Estimate today's one-year forward exchange rate between the dollar and the euro