Question
Current Spot Rate (Argentine Peso = ARS) ARS 14.16/$ 3 month forward rate ARS 14.22/$ Annual US Interest Rate 1.5 percent Annual Argentine Interest Rate
Current Spot Rate (Argentine Peso = ARS) ARS 14.16/$
3 month forward rate ARS 14.22/$
Annual US Interest Rate 1.5 percent
Annual Argentine Interest Rate 5.6 percent
Annual US inflation rate 2 percent
Annual Argentine Inflation rate 4.8 percent
1)The Expected next year's forecast of Argentine Peso (ARS) based on international Fisher effect is:
2)The Expected next year's forecast of Argentine Peso (ARS) based on Purchasing Power Parity Hypothesis is:
a)Depreciation of ARS about 4.1 percent
b)Appreciation of ARS about 2 percent
c)Appreciation of ARS about 4.8 percent
d)Depreciation of ARS about 2.8 percent
e)Appreciation of ARS about 1.5 percent
f)Depreciation of ARS about 5.6 percent
g)Appreciation of ARS about 2.8 percent
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