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Please tell me three assumptions and a conclusion from these results: Results: o Eurozone Risk Free Rate = 5.39% o Forward Exchange Rate = $1.3050
Please tell me three assumptions and a conclusion from these results:
Results:
o Eurozone Risk Free Rate = 5.39%
o Forward Exchange Rate = $1.3050
o Eurozone Inflation Rate = 4.45%
o Expectations Theory of Exchange Rate = $1.3050
o Eurozone Risk-Free Rate % Difference = 1.72%
o Forward Exchange Rate % Difference = 1.72%
o Expectations Fut. Spot Rate % Difference = 1.72%
o Eurozone Inflation Rate % Difference = 1.72%
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