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Question 24 Suppose: Current spot rate of Euro (EUR) - $1.3543 Current 1-year forward rate for EUR - $1.2908 1 year interest rate in the

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Question 24 Suppose: Current spot rate of Euro (EUR) - $1.3543 Current 1-year forward rate for EUR - $1.2908 1 year interest rate in the U.S. -3,5% 1-year interest rate in the Euro Zone - 7.5% Based on IFE during the one-year period, the expected percentage change in the spot rate for EUR should be 3.86% 96.289 -3.72% 4,05%

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