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Please show the formula in a correct way As of today, the spot exchange rate is 1.00 = $1.20 and the rates of inflation expected
Please show the formula in a correct way
As of today, the spot exchange rate is 1.00 = $1.20 and the rates of inflation expected to prevail for the next year in the U.S. is 1% and 4% in the euro zone. What is the one-year expected exchange rate in one year (F($/)) that should prevail? Select one: ga 1.00 = $1.165385 D O b. 1.00 = $1.61572 Oc 1.61570 = $1.00 . O d. 1.00 = $ 1.18846Step by Step Solution
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