Question: Current interest rates are ( i_{$}=4 % ; i_{epsilon}=6 % ). Expected interest rates next year are: ( i_{$}=7 % ; i_{epsilon}=3 % ). The

$Current interest rates are \$ i_{\\$}=4 \\% ; i_{\\epsilon}=6 \\% \$.$

Current interest rates are \$ i_{\\$}=4 \\% ; i_{\\epsilon}=6 \\% \$. Expected interest rates next year are: \$ i_{\\$}=7 \\% ; i_{\\epsilon}=3 \\% \$. The expected spot rate in two years is \$ \\mathrm{S}_{2}(\\$ / )=1.200 \$. Use the asset market approach to compute the current spot rate \$ \\mathrm{So}(\\$ / ) \$. Please type in the number without the currency signs. For example, if your answer is \$ \\$ 1.25 / \$, then type in 1.25 as your final answer. Please keep at least three decimal places (up to 5 decimal places)

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