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 ____%.
A) 1.90
B) 2.00
C) -1.87
D) none of the above

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 ____%. A) 1.90 B) 2.00 C) -1.87 D) none of the above
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SOLUTION: 
$E ( e ) = 1.07 / 1.05 - 1 = 1.90 \%$

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