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A Standard Commodity Basket costs $288.75 in the US and MXP 5639 in Mexico. If inflation is expected to be 2.5% p.a. in the US
A Standard Commodity Basket costs $288.75 in the US and MXP 5639 in Mexico. If inflation is expected to be 2.5% p.a. in the US and 3.75% p.a. in Mexico over the next twelve months, calculate the expected spot rate in one year.
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