Question
Using below information: Current spot rate GBP1 = EUR1.25 Annual interest rate in EU: 1.50% Annual interest rate in UK: 7.0% Applying International Fishier Effect
Using below information:
Current spot rate GBP1 = EUR1.25
Annual interest rate in EU: 1.50%
Annual interest rate in UK: 7.0%
Applying International Fishier Effect theory, what should be the expected future spot rate for GBP1?
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International Financial Management
Authors: Jeff Madura, Roland Fox
5th Edition
1473770505, 978-1473770508
