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Assume $1 is currently equal to $19.33 Mexican peso in the spot market. Assume the expected...

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Finance

Assume $1 is currently equal to $19.33 Mexican peso in the spotmarket. Assume the expected inflation rate in Mexico is 5.58percent while it is 2.80 percent in the U.S. What is the expectedexchange rate one year from now if uncovered interest rate parityexists?

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Assume $1 is currently equal to $19.33 Mexican peso in the spotmarket. Assume the expected inflation rate in Mexico is 5.58percent while it is 2.80 percent in the U.S. What is the expectedexchange rate one year from now if uncovered interest rate parityexists?

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