A A B C D E 3 3 Suppose the spot exchange rate for the Hungarian forint is HUF 222 23. The inflation rate in the United States will be 2.9 percent per year. It will be 4.5 percent in Hungary. What do you predict the exchange rate will be in one year? In two years? In five years? 4 5 6 7 8 000 Spot on HUF U.S. inflation rate Hungarian inflation rate Year to predict exchange rate Year to predict exchange rate Year to predict exchange rate 222 23 2.90% 4.50% 1 2 5 9 10 11 12 13 14 Complete the following analysis. Do not hard code values in your calculations. 15 16 E(S) HUF 17 18 E(S2) HUF 19 20 E(S) HUF 21 22