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What is the current spot rate

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Question - Suppose the one-year and two-year forecasts for the rate of inflation in Sweden are 1% and 5% respectively. Suppose also that the one-year and two-year forecasts for the rate of inflation in Spain are 4% and 3% respectively. If the expected spot rate between the Swedish Krona (SEK) and the EUR is EURO.096/SEK at the end of year 2, what is the current spot rate?

Reference no: EM133116844

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