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Please explain what these rates mean; Forward Exchange Rate = $1.3050 oEurozone Inflation Rate = 4.45% oExpectations Theory of Exchange Rate = $1.3050 oEurozone Risk-Free

Please explain what these rates mean;

Forward Exchange Rate =$1.3050

oEurozone Inflation Rate =4.45%

oExpectations Theory of Exchange Rate =$1.3050

oEurozone Risk-Free Rate % Difference =1.72%

oForward Exchange Rate % Difference =1.72%

oExpectations Fut. Spot Rate % Difference =1.72%

oEurozone Inflation Rate % Difference =1.72%

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