• 2022-06-12
    As of today, the spot exchange rate is €1.00 = $1.60 and the rates of inflation expected to prevail for the next year in the U.S. is 2% and 3% in the euro zone. What is the one-year forward rate that should prevail? ( )
    A: €1.00 = $1.6157
    B: €1.6157 = $1.00
    C: €1.00 = $1.5845
    D: $1.00 × 1.03 = €1.60 × 1.02