The current spot exchange rate is HUF262/$1.00. Long-run inflation in Hungary is estimated at 10 percent annually and 3 percent in the United States. If PPP is expected to hold between the two countries, what spot exchange rate should one forecast five years into the future? (Round your answer to 2 decimal places.
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The current spot exchange rate is HUF262/$1.00. Long-run inflation in Hungary is estimated at 10 percent annually and 3 percent in the United States. If PPP is expected to hold between the two countries, what spot exchange rate should one
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- The current spot exchange rate is HUF254 per $1.00. Long-run inflation in Hungary is estimated at 10 percent annually and 3 percent in the United States. If PPP is expected to hold between the two countries, what spot exchange should one forecast five years into the future? Note: Round your answer to 2 decimal places.The current exchange rate is $1.19 / Euro. The expected inflation rate for the next year in the U.S. is 0.62% while it is 0.79% in the EU. What would be the expected exchange rate in one year’s time if Purchasing Power Parity holds? Provide your answer till 4 digits after the decimal point. Is the Euro expected to appreciate or depreciate?Please provide all your answers round to 4 decimal places. Profits should be reported as positive numbers and losses as negative numbers. M As of today, the spot exchange rate is ¥0.65 / € and the rates of inflation expected to prevail for the next year in Japan is 1 % and 2 % in the euro zone. What is the forecast for what the exchange rate will be in one year if the PPP holds? Question 7
- ) Suppose the spot exchange rate for the Hungarian Forint is HUF 209/USD. The infiation rate in the US is 3.5% per year and 5.7% in Hungary. What do you predict the exchange rate will be in two-years? _What is the-expected appreciation or depreciation of the USD over this period?Suppose the current exchange rate for the Polish zloty is zl 2.88. The expected exchange rate in three years is zl 2.96. What is the difference in the annual inflation rates for the United States and Poland over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Difference in annual inflation rates %Suppose that the annualized inflation in the US is 3% while annual inflation in Europe is 1%. If the current exchange rate is $1.40 per Euro that would you expect the exchange rate to be in one year? If the exchange rate one year from now turns out to be $1.50 per Euro, what has happened to the real exchange rate?
- The current spot rate between the euro and dollar is €1.1023/$. The annual inflation rate in the U.S is expected to be 1.94 percent and the annual inflation rate in Euroland is expected to be 2.87 percent. Assuming relative purchasing power parity holds, what will the exchange rate be in two years?The current spot rate between the pound and dollar is £.7562/$. The expected inflation rate in the U.S is 2.47 percent and the expected inflation rate in the U.K. is 3.03 percent. Assuming relative purchasing power parity holds, what will the exchange rate be next year?The annual inflation rate in the U.S is expected to be 2.68 percent and the annual inflation rate in Poland is expected to be 4.21 percent. The current spot rate between the zloty and dollar is Z4.0992/$. Assuming relative purchasing power parity holds, what will the exchange rate be in four years? Multiple Choice Z4.2902/$ Z4.3559/$ Z3.8540/$ Z3.9139/$ Z4.2256/$
- Suppose that the Eurozone is the domestic country and the United States is the foreign country. The spot exchange rate quote is S=e:$ = $1.25. Suppose further that the expected annual U.S. inflation rate is 8.91 percent and the expected Eurozone annual inflation rate is 12.87 percent. Calculate the expected spot rate and the approximate expected spot rate one year awayIf the current exchange rate between the US and the UK is such that the current price of a pound is $1.20. What is the expected future exchange rate in one year if the US risk free rate is 2% and the UK risk free rate is 2.5% (use 5 decimal places)?Today's spot exchange rate: 1 euro = $1.25.US interest rate (home interest rate) is 7%.EU interest rate (foreign interest rate) is 10%.a) If the IRP (Interest rate parity) holds, what should the forward exchange rate be today?b) Assume that today, you invest $500 in the EU market for one year and at the same time, enter a currency forward contract to sell euro in a year at the forward rate from part a). If today's spot exchange rate is: 1 euro=$1.32 instead of $1.25, show how much profits or losses you make next year.