Spot rate DKK 6.8911/$` 12-month forward rate DKK 6.9866/$ Inflation in US 2.0 percent/year Inflation in Denmark
Fantastic news! We've Found the answer you've been seeking!
Question:
Spot rate DKK 6.8911/$`
12-month forward rate DKK 6.9866/$
Inflation in US 2.0 percent/year
Inflation in Denmark 4.4 percent/year
Interest rate in US 3.2 percent/year
Interest rate in Denmark 5.5 percent/year
Question : Forecast the outright value of DKK for next year on the basis of the International Fisher effect.
Posted Date: