Question: Problem 1 8 . 2 Required: The current spot exchange rate is HUF 2 5 0 per $ 1 . 0 0 . Long -

Problem

18.2

Required: The current spot exchange rate is HUF

250

per $

1.00 .

Long

-

run inflation in Hungary is estimated at

10

percent annually and

3

percent in the United States. If PPP is expected to hold between the two countries, what spot exchange should one forecast five years into the future? Note: Round your answer to

2

decimal places.

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