Current exchange rates, Current Exchange Rates: 1.3

Current exchange rates

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Reference no: EM131332853

Current Exchange Rates: 1.3 Canadian Dollars per US$ and US$1.5 per Euro. Current one-year Inflation Rates: 5% in Canada, 3% in US, and 6% in the Europe If interest parity holds true, what is the expected exchange rate between Euros and US$ one year from now?

a) .648 Dollars per Euro

b) .686 Euros per Dollar

c) 1.46 Euros per Dollar

d) 1.54 Dollars per Euro

Reference no: EM131332853

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