The CEO requires a forecast of the one year and two year exchange rates for the...
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The CEO requires a forecast of the one year and two year exchange rates for the $/ calculated based on purchasing power parity (PPP) and with the International Fisher Effect (IFE). Calculate the one year forward $/ exchange rate based on PPP in the space provided below: (2 marks) Calculate the two year forward $/ exchange rate based on PPP in the space provided below: (2 marks) Calculate the one year forward $/ exchange rate based on IFE in the space provided below: (2 marks) The CEO requires a forecast of the one year and two year exchange rates for the $/ calculated based on purchasing power parity (PPP) and with the International Fisher Effect (IFE). Calculate the one year forward $/ exchange rate based on PPP in the space provided below: (2 marks) Calculate the two year forward $/ exchange rate based on PPP in the space provided below: (2 marks) Calculate the one year forward $/ exchange rate based on IFE in the space provided below: (2 marks)
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