Question: The current spot rate between the U.S. dollar and the Swedish krona is $1 = 6.8682 krona. Assume the inflation rate in the United States

The current spot rate between the U.S. dollar and the Swedish krona is $1 = 6.8682 krona. Assume the inflation rate in the United States is 5 percent and in Sweden is 1 percent.

What is the expected spot rate in one year?

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