contestada

Forward rates. Your company has posted you on a 27​-month overseas assignment in​ Budapest, Hungary. You will be living on the Buda side of the​ river, but will be spending much of your time on the Pest side. The current indirect rate for the Hungarian forint is 188.13 forints per U.S. dollar. If the anticipated inflation rate in the United States is 2.8​% and the anticipated inflation rate in Hungary is 6.9​% ​(annually), what exchange rate do you anticipate at the end of your​ assignment? What exchange rate do you anticipate at the end of your​ assignment? nothing forints per​ $ ​(Round to two decimal​ places.)

Respuesta :

Answer:

The exchange rate that at the end of your​ assignment is Florint 203.43 per USD

Explanation:

According to the given we have the following:

Current rate = F 188.13/$

inflation in foreign country=6.9%

domestic inflation=2.8%

Therefore, in order to calculate the exchange rate that do you anticipate at the end of your​ assignment we have to make the following calculation:

exchange rate at the end of your​ assignment= 188.13*(1.069^2)/(1.028^2)

exchange rate at the end of your​ assignment=Florint 203.43 per USD

The exchange rate that at the end of your​ assignment is Florint 203.43 per USD

Otras preguntas