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Current interest rates are i$ = 4 % ;i = 6 % . Expected interest rates next year are i$ = 7 % ;i =

Current interest rates are i$=4%;i=6%. Expected interest rates next year are i$=7%;i=3%. The expected spot rate in two years is S2($/)=1.52. Use the asset market approach to compute the current spot rate S0($/). Please type in the number without the currency signs. For example, if your answer is $1.25/, then type in 1.25 as your final answer. Please keep at least three decimal places (up to 5 decimal places).

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