Currently the Euro is trading at €/$ 0.7206; if the current anticipated inflations are 4% (U.S)and 2.3% (Euro)over the next year what is the fair one-year forward price? (€/$)

Name: Currently the Euro is trading at €/$ 0.7206; if the current anticipated inflations are 4% (U.S)and 2.3% (Euro)over the next year what is the fair one-year forward price? (€/$)
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Quizplus · Accepted Answer

11ea7e38_8ca1_220b_a2f7_938c42fc861c_TB2250_00 By equation 23.3

Currently the Euro Is Trading at €/$ 0