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  3. 10 as of today, the spot exchange rate is $1.35, a

10 as of today, the spot exchange rate is $1.35, and the rates of inflation...

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Finance

10 as of today, the spot exchange rate is $1.35, and the rates of inflation expected to prevail for the next year is 4.2% for the United States, and 3.3% for Eurozone. What is the one-year forward rate under which there will be no arbitrage?
$1.3554/
$1.3618
$1.3424/
$1.3328/
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