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PLEASE SHOW ALL THE WORK , thankyou i) You are provided the following information on the Mexican Peso: Current spot rate: $ 0.1000/MP (MP -
PLEASE SHOW ALL THE WORK , thankyou
i) You are provided the following information on the Mexican Peso: Current spot rate: $ 0.1000/MP (MP - Mexican Peso) 300 day interest rate in the US: 7% 300 day interest rate in Mexico: 25% 300 day Forward rate for the MP a the USS: $ 0.1010/MP Forecast of the 190 day rate from agency 1: $ 0.1300/MP Forecast of the 190 day rate from agency 2: $ 0.0811/MP Forecast of the 190 day rate from agency 3: $0.1399/MP Forecast of the 190 day rate from agency 4: $0.0825/MP Forecast of the 190 day rate from agency 5: $ 0.1100/MP Forecast of the 190 day rate from agency 6: $ 0.0922/MP The actual spot rate 190 days from now:$ 0.1010/MP a) Rank th e agencies in terms of th eir forecasting expertise, assuming that the forward is available to compare forecasts. Make sure that you show all your workings tor (10 points). b) Assume that the forward rate was not available. Given this assumption, rank the agencies in terms of their forecasting expertise (10 points)
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