Suppose that the one year interest rate is 5 0 percent in the United States and 3 5 percent in Germany, and the one year forward exchange rate is $1 16 What must the spot exchange rate be none of the options $1 1768 $1 12 $1 1434

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Suppose that the one year interest rate is 5 0 percent in the United States and 3 5 percent in Germany, and the one year forward exchange rate is $1 16   What must the spot exchange rate be  none of the options $1 1768  $1 12  $1 1434

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Question

Suppose that the one-year interest rate is 5.0 percent in the United States and 3.5 percent in Germany, and the one-year forward exchange rate is

Suppose that the one-year interest rate is 5.0 percent in the United States and 3.5 percent in Germany, and the one-year forward exchange rate is $1.16/. What must the spot exchange rate be? none of the options $1.1768/ $1.12/ $1.1434/

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