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 neriod?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter21: International Cash Management
Section: Chapter Questions
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) 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?
Transcribed Image Text:) 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?
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