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Q1 Interest rates in Hungary are currently 8.25% p.a. and in Europe interest rates are currently offered at 4.5% p.a. Current exchange rates are GBP/HUF

Q1 Interest rates in Hungary are currently 8.25% p.a. and in Europe interest rates are currently offered at 4.5% p.a. Current exchange rates are GBP/HUF 456.66 and EUR/GBP 0.8565. The GBP/HUF one year forward points are 780. The EUR/GBP one year forward points are 124. Note: Points are quoted to the last significant digit in the quotation. (b) Generate a one-year forecast for the value of the Euro in terms of Hungarian Forint using unbiased forward expectations (4 Decimal places)

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