Question
The Chase Bank currency desk is showing a spot rate of NZD 1.65/USD today. If the estimated inflation rate is 2% in the U.S. and
The Chase Bank currency desk is showing a spot rate of NZD 1.65/USD today. If the estimated inflation rate is 2% in the U.S. and 5% in New Zealand, calculate the NZD/USD spot rate in one years time, assuming purchasing power parity holds true.
a) NZD 1.6029/USD
b) NZD 1.6985/USD
c) NZD 1.6830/USD
d) NZD 1.7325/USD
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Fundamentals Of Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567934757, 978-1567934755
