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Forecasting the Future Spot Rate Based on IFE. Assume that the spot exchange rate of the South African rand (ZAR) is USD .06. The 180-day

Forecasting the Future Spot Rate Based on IFE. Assume that the spot exchange rate

of the South African rand (ZAR) is USD .06. The 180-day interest rate (annualized) is 1% in

the United States and 6% in South Africa. What will the spot rate ZARUSD be in 6 months,

according to the IFE? (You may use the approximate formula to answer this question.)

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