The six-month forward :S exchange rate is S0.9976 per . A major commercial bank has made public

Question:

The six-month forward €:S is S0.9976 per €. A major commercial bank has made public a model that it uses to forecast future €:$ spot exchange rates. This model forecasts the spot six months later to be $0.9781 per €. Suppose that the market participants believe that this model is quite good, and they all stan using this model. What do you think would happen to the spot and forward exchange rates and the six-month interest rates in dollars and euros? Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...