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We have the following information. The spot rate in the s/euro is .7 $/euro. What will...

We have the following information. The spot rate in the s/euro is .7 $/euro. What will the expected spot rate be, if the interest rates in the s and the euro are .04 and .09 respectively? Show both dollar and euro terms. Explain the meaning of your results. Does the aforementioned relate to inflation differences between the two currencies?

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jeff jeffy answered 2 years ago
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