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parts a and c im having some issues understanding. Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity (PPP) and
parts a and c im having some issues understanding.
Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity (PPP) and the International Fisher Effect (IFE) to forecast spot exchange rates. Omni gathers the financial information as follows: Required: Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively): a. The current ZAR spot rate in USD that would have been forecast by PPP. Note: Do not round intermediate calculations. Round your answer to 4 decimal places. b. Using the IFE, the expected ZAR spot rate in USD one year from now. Note: Do not round intermediate calculations. Round your answer to 4 decimal places. c. Using PPP, the expected ZAR spot rate in USD four years from now. Note: Do not round intermediate calculations. Round your answer to 4 decimal places Step by Step Solution
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