question archive Suppose that the UK is the domestic country and the Euro zone is the foreign country
Suppose that the UK is the domestic country and the Euro zone is the foreign country
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Suppose that the UK is the domestic country and the Euro zone is the foreign country. The spot exchange rate quote is GBP:EUR=1.5225. Suppose further that the Euro zone inflation rate is 9.75 percent and the inflation rate in the UK is 12.25 percent. The exact expected spot rate equal to GBP:EUR= The approximate expected spot rate equal to GBP:EUR=
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