Question
Assume the current spot rate between the UK and the U.S. is 0.817 per $1, the expected inflation rate in the U.S. is 2.82 percent,
Assume the current spot rate between the UK and the U.S. is 0.817 per $1, the expected inflation rate in the U.S. is 2.82 percent, and the expected inflation rate in the UK is 4.15 percent. If relative purchasing power parity exists, what will the exchange rate be 3 years from now?
Enter your answer rounded off to FOUR decimal points. Do not enter any currency symbol in th answer box.
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Finance For Growing Enterprises
Authors: Edward W. Davis, Roger Buckland
1st Edition
1138679941, 978-1138679948
