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Trans$-$Atlantic Quotes. Separated by more than $3,000$ nautical miles and

five time zones, money and foreign exchange markets in both London and

New York are very efficient. The following information has been collected from

the respective areas:

a$.$ What do the financial markets suggest for inflation in Europe next year?

b$.$ Estimate today's $1-$year forward exchange rate between the dollar and the

euro.

a$.$ What do the financial markets suggest for inflation in Europe next year?

The rate the financial markets suggest for inflation in Europe next year is

$\%.($Round to three decimal places.$)$