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Current one-year interest rates in Egypt are 3 percent, while one-year interest rates in Jordan, are 12 percent. You converts JOD100,000 to Egyptian Pound and

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Current one-year interest rates in Egypt are 3 percent, while one-year interest rates in Jordan, are 12 percent. You converts JOD100,000 to Egyptian Pound and invests them in Egypt. One year later, she converts the Egyptian Pound back to Jordanian Dinar. The current spot rate of the Egyptian Pound is (JODO.05). According to the IFE, what should the spot rate of the Egyptian Pound in one year be? Select one: a. 0.0481 b. 0.0472 c. 0.0544 d. 0.0529

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