Suppose annual inflation rates in the U.S. and Mexico are expected to be 3% and 20%, respectively.
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Question:
Suppose annual inflation rates in the U.S. and Mexico are expected to be 3% and 20%, respectively. If the current spot rate for the Mexican peso is $.042, then the best estimate of the peso's spot value in180days is:
A.$0.0191
B.$0.0262
C.$0.0388
D.$0.0464
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