Question
The U.S. inflation rate is expected to be 3 percent over the next year, while the Mexican inflation rate is expected to be 12 percent.
The U.S. inflation rate is expected to be 3 percent over the next year, while the Mexican inflation rate is expected to be 12 percent. The current spot rate of the peso is $0.057. Using purchasing power parity, calculate the expected spot rate at the end of one year.
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
