Business
Business, 10.03.2020 03:07, wyattjefferds05

S of today, the spot exchange rate is €1.00 = $1.25 and the rates of inflation expected to prevail for the next year in the U. S. is 2 percent and 3 percent in the euro zone. What is the one-year forward rate that should prevail? A. €1.00 = $1.2623 B. $1.00 = €1.2623 C. €1.00 = $0.9903 D. €1.00 = $1.2379

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