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Q. 11 Assume the inflation rate in the U.S. is 1.00 percent. The spot rate for a foreign currency is 1.4210 while the 1-year forward

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Q. 11

Assume the inflation rate in the U.S. is 1.00 percent. The spot rate for a foreign currency is 1.4210 while the 1-year forward rate is 1.4375. What is the approximate rate of inflation in the foreign country? 2.16% 2.06% 2.26% 1.86% 1.96%

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