Trans$-$Atlantic Quotes. Separated by more than $3,000$ nautical miles and five time zones, money and foreign

exchange markets in both London and New York are very efficient. The following information has been collected from

the respective areas: $.$

a$.$ What do the financial markets suggest for inflation in Europe next year?

b$.$ Estimate today's $1-$year forward exchange rate between the dollar and the euro.

a$.$ What do the financial markets suggest for inflation in Europe next year?

The rate the financial markets suggest for inflation in Europe next year is

$\%.($Round to three decimal places.$)$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$