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Suppose that the current spot rate between dollar and euro is 1.2 $/euro, and the expected future spot rate in 12 months is 1.26 $/euro.
Suppose that the current spot rate between dollar and euro is 1.2 $/euro, and the expected future spot rate in 12 months is 1.26 $/euro. If the 1 year interest rate of dollar is 6%, the the 1-year interest rate of euro should be...?
Suppose that the current spot rate is 15 Pesos per dollar, if the 12 months interest rate are 3% on Dollar, and 13% on Peso, the expected future exchange rate for peso/$ and the end of the year (based on the uncover interest parity approximation ) would be....?
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