Question
The spot rate for a foreign currency is 1.4362 while the 1-year forward rate is 1.4374. Assume the inflation rate in the U.S. is 1.20
The spot rate for a foreign currency is 1.4362 while the 1-year forward rate is 1.4374. Assume the inflation rate in the U.S. is 1.20 percent. What is the approximate rate of inflation in the foreign country?
| 1.26% | ||
| 1.28% | ||
| 1.30% | ||
| 1.32% | ||
| 1.34% |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
8th Edition
007322359X, 9780073223599
