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Assume that the spot exchange rate of the South African rand (ZAR) is USD .055. The 180-day interest rate (annualized) is 1% in the United
Assume that the spot exchange rate of the South African rand (ZAR) is USD .055. The 180-day interest rate (annualized) is 1% in the United States and 6% in South Africa. According to the IFE, what will the spot rate of ZARUSD be in 6 months? (You may use the approximate formula to answer this question.) (6 points)
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
