Question
Assume: annual inflation rate is 3.5% in the U.S. and 1.5% in the U.K.; the current spot rate is $1.50/ Calculate the price of
Assume: annual inflation rate is 3.5% in the U.S. and 1.5% in the U.K.; the current spot rate is $1.50/ Calculate the price of USD 1year from now based on relative PPP. Write your answer as a number with 4 digits after the decimal point, e.g. *.1234. 0.6538/$
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Global Strategy
Authors: Mike W. Peng
5th Edition
0357512367, 978-0357512364
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