Question
Assume the current spot rate between the UK and the U.S. is 0.866 per $1, the expected inflation rate in the U.S. is 1.4 percent,
Assume the current spot rate between the UK and the U.S. is 0.866 per $1, the expected inflation rate in the U.S. is 1.4 percent, and the expected inflation rate in the UK is 5 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.
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Forex This Book Includes Forex Beginners Forex
Authors: Jordon Sykes
1st Edition
154063180X, 978-1540631800
