If the one-year forward rate for the euro is $1.07, while the current spot rate is $1.05, the expected percentage change in the euro is ____ percent.
A) 1.90
B) 2.00
C) -1.87
D) None of these are correct.

Name: If the one-year forward rate for the euro is $1.07, while the current spot rate is $1.05, the expected percentage change in the euro is ____ percent. A) 1.90 B) 2.00 C) -1.87 D) None of these are correct.
Brand: Quizplus
Rating: 4.9 (30 reviews)

Question

Quizplus · Accepted Answer

The expected percentage change in the euro is (1.07 - 1.05) / 1.05 * 100 = 1.90%.

If the One-Year Forward Rate for the Euro Is $1