What is the best estimate of the 1-year forward exchange


Suppose that in Japan the interest rate is 8% and inflation is expected to be 3%. meanwhile, the expected inflation rate in france is 12% and the British interest rate is 14%. to the nearest whole number, what is the best estimate of the 1-year forward exchange premium (discount) at which the pound will be selling relative to the euro?

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Finance Basics: What is the best estimate of the 1-year forward exchange
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