Question: In October 2 0 1 3 , there is a consensus in the capital market that the annual inflation rate is likely to be 3
In October there is a consensus in the capital market that the annual inflation rate is likely to be in US and in China for the next two years. The spot exchange rate in October is CNY$ Based on this information, answer the following questions regarding your prediction on foreign exchange rate.
Using the exact version of parity relationships the expected spot rate in October one year from is CNY
$Please use indirect quote and leave decimal points points
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