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Assume that inflation in the US is expected to be 9%, while inflation m Australia is expected to be 5% over the next year. Today
Assume that inflation in the US is expected to be 9%, while inflation m Australia is expected to be 5% over the next year. Today the Australian dollar is quoted at 50.70. You believe that purchasing power parity holds. How much is the expected future spot rate (S12 $0.69 $0.67 $0.73 $0.71
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Finance Applications And Theory
Authors: Marcia Millon Cornett, John R. Nofsinger, Troy Adair
3rd International Edition
1259252221, 9781259252228
