Question: Using the following information, answer the problems below. Each part is independent of one another, i.e. b) is not related to d) State your answers

Using the following information, answer the problems below. Each part is

Using the following information, answer the problems below. Each part is independent of one another, i.e. b) is not related to d) State your answers to four decimal places. Spot rates of the US Dollar on December 8, 2017 Mexican Peso (MXP) to US Dollar (USD): 18.5369 US Dollar (USD) to British Pound (GBP): 1.3352 Expected inflation rates for the year ending December 8, 2018: USA: 1.0%, Mexico: 5.5%, UK: 3.5% Annual interest rates for the year ending December 8, 2018: USA: 2.0%, Mexico: 6.0%, UK: 4.0% a) What is the USD/MXP spot rate on December 8, 2017? What is the MXP/GBP spot rate on December 8, 2017

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