Assume the Spot Exchange Rate for the Hungarian Forint Is

question 54

Multiple Choice

Assume the spot exchange rate for the Hungarian forint is HUF 215.Also assume the inflation rate in the United States is 4 percent per year while it is 9.5 percent in Hungary.What is the expected exchange rate 5 years from now?

• A)269
• B)276
• C)281
• D)294
• E)299

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