Assume the inflation rate in the U.S. is 1.59 percent. The spot rate for a foreign...

70.2K

Verified Solution

Question

Finance

Assume the inflation rate in the U.S. is 1.59 percent. The spotrate for a foreign currency is 1.412 while the 1-year forward rateis 1.419. What is the approximate rate of inflation in the foreigncountry?

2.46%

2.35%

2.28%

2.17%

2.09%

Answer & Explanation Solved by verified expert
4.1 Ratings (621 Votes)
SEE THE    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Assume the inflation rate in the U.S. is 1.59 percent. The spotrate for a foreign currency is 1.412 while the 1-year forward rateis 1.419. What is the approximate rate of inflation in the foreigncountry?2.46%2.35%2.28%2.17%2.09%

Other questions asked by students