Question: Problem 21-13 Expected Spot Rates [LO2] Suppose the spot exchange rate for the Hungarian forint is HUF 204.94. The inflation rate in the United States

 Problem 21-13 Expected Spot Rates [LO2] Suppose the spot exchange rate

Problem 21-13 Expected Spot Rates [LO2] Suppose the spot exchange rate for the Hungarian forint is HUF 204.94. The inflation rate in the United States will be 2.1 percent per year. It will be 5.1 percent in Hungary. a. What do you predict the exchange rate will be in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What do you predict the exchange rate will be in two years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What do you predict the exchange rate will be in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Exchange rate in one year b. Exchange rate in two years c. Exchange rate in five years HUF/S HUF/S HUF/S

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