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Suppose the spot exchange rate for the Hungarian Forint is HUF 308.27. Interest rates in the United States are 2.6 per year. They are 4.5
Suppose the spot exchange rate for the Hungarian Forint is HUF 308.27. Interest rates in the United States are 2.6 per year. They are 4.5 percent in Hungary. a.) What do you predict the exchange rate will be in one year? b.) In two years? In five years? What relationship are you using?
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