Solution-Problem regarding the expected inflation rates

Problem regarding the expected inflation rates

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Reference no: EM131413614

As of today, the spot exchange rate is USD 1.60 / EUR and the expected inflation rates for next year are 1.97% in the US and 3.00% in the euro zone. What is the one-year forward rate for EUR under relative purchasing power parity and unbiased forward expectations (Enter the numerator of the USD / EUR forward rate)?

Reference no: EM131413614

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Problem regarding the expected inflation rates : As of today, the spot exchange rate is USD 1.60 / EUR and the expected inflation rates for next year are 1.97% in the US and 3.00% in the euro zone. What is the one-year forward rate for EUR under relative purchasing power parity and unbiased for..

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Problem regarding the expected inflation rates

Reference no: EM131413614

Reference no: EM131413614

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