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You read the newspaper and see a spot exchange rate of 5.855 = 5. Suppose that the inflation rate expected to prevail for the next
- You read the newspaper and see a spot exchange rate of 5.855 = 5. Suppose that the inflation rate expected to prevail for the next year in the UK is 2% and the one-year forward rate is 5=5.905. Under the PPP, what is rate of inflation that should prevail in the Euro zone, round to 4 decimal places?
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Understanding Financial Risk Management
Authors: Angelo Corelli
1st Edition
0415746183, 978-0415746182
