Question
Assume the inflation rate in the U.S. is 1.34 percent. The spot rate for a foreign currency is 1.221 while the 1-year forward rate is
Assume the inflation rate in the U.S. is 1.34 percent. The spot rate for a foreign currency is 1.221 while the 1-year forward rate is 1.214. What is the approximate rate of inflation in the foreign country?
| 0.77% | ||
| 0.73% | ||
| 0.68% | ||
| 0.65% | ||
| 0.54% |
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
8th Edition
0077261453, 978-0077261450
