calculate the financial problem

Business & Finance
Tutor: None Selected Time limit: 1 Day

4.10  Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%, respectively, over the next several years. If the current spot rate for the Mexican peso is $.005, then the best estimate of the peso's spot value in 3 years is

a)  $.00276

b)  $.01190

c)  $.00321

d)  $.00102

Oct 25th, 2015

Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%, respectively, over the next several years. If the current spot rate for the Mexican peso is $.005, then the best estimate of the peso's spot value in 3 years is

Ans : - Option (d) $.00102 is correct.

Oct 25th, 2015

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