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Forecasting the future spot rate based on ife

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Forecasting the Future Spot Rate Based on IFE.

Assume that the spot exchange rate of the South African rand (ZAR) is USD .06. The 180-day interest rate (annualized) is 1% in the United States and 6% in South Africa. What will the spot rate ZARUSD be in 6 months, according to the IFE? (You may use the approximate formula to answer this question.)

Reference no: EM132674790

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