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Relative PPP and Forward/Future Rate (40 points) Find the inflation rates of US and the foreign country/region (colombia) last year. (10 points) Use information above
- Relative PPP and Forward/Future Rate (40 points)
- Find the inflation rates of US and the foreign country/region (colombia) last year. (10 points)
- Use information above and the information from question 3.3 to test relative purchase power parity - compare the direction and magnitude of the rate change with the inflation rate difference. (20 points) (3.3. Currency Devaluated = 3279.76- 3104.35 = 175.41 175.41/3104.35 = 5.65%
- Find the most recent one-month or three-month forward rate or future rate. Please indicate the source of information. (10 points)
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