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 S($/ )=1.200. Use the asset market approach to compute the current spot rate So($/). 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 decimar places).

Current interest rates are \\( i_{\\$}=4 \\% ; i_{\\epsilon}=6 \\% \\). Expected interest rates next year are: \\( i_{\\$}=7 \\% ; i_{\\epsilon}=3 \\% \\). The expected spot rate in two years is \\( S_{2}(\\$ / \\epsilon)=1.200 \\). Use the asset market approach to compute the current spot rate \\( \\mathrm{So}(\\$ / ) \\). 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 decimaplaces)