Question: Intro The current spot exchange rate is $ 0 . 0 4 2 per Mexican peso. Assume that the real interest rate is 2 %

Intro
The current spot exchange rate is $0.042 per Mexican peso. Assume that the real interest rate is 2%
everywhere, and that the annual nominal interest rate is 4% in the U.S. and 4.6% in Mexico.
Part 1
What is the approximate expected exchange rate (measured in U.S. dollars per Mexican peso)
according to the international Fisher effect?
Intro The current spot exchange rate is $0.042 per Mexican peso.

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