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The current exchange rate is 1.16 $/ and interest rates are 3.5% in US and 1% in eurozone. Sometime later, the euro interest rate suddenly
The current exchange rate is 1.16 $/ and interest rates are 3.5% in US and 1% in eurozone.
Sometime later, the euro interest rate suddenly rises to 2%.
- According to Asset Market Theory, what will be the new expected rate?
- According to Asset Market Theory, what will be the new spot rate?
- According to Fisher Theory, what will be the new spot rate?
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
17th Edition
126001391X, 978-1260013917
