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A of today, the spot exchange rate is 1.00 $1.60 and the rates of inflation expected to prevail for the next yea should prevail? A.

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A of today, the spot exchange rate is 1.00 $1.60 and the rates of inflation expected to prevail for the next yea should prevail? A. 1.00 = $1.6157 r in the U.S. is 2% and 3% in the euro zone. What is the one-year forward rate that B. 1.6157= $1.00 C. 1.00 $1.5845 D. 1.00 $0.631 1 horrow cither $1,000,000 or 800,000 for one year. The

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