expected spot rate in one year between Euro and USD
Statistical Calculations for Initiation into the Cardinal Club
July 9, 2019Descriptive Statistics
July 9, 2019One year interest rates are currently 3.30% in the U.S and 2.60% in “Euroland. The current spot rate between the euro and dollar is 1.3225/. What is the expected spot rate in one year if the international Fisher effect holds?
Assume you have 1 Euro right now.
If you deposit 1 Euro into the bank in Euorland, after 1 year, you will …
The solution shows detailed calculation of the expected spot rate in one year between Euro and USD.
