Prediction of future spot rate from forward rate

Reference no: EM1313134

1. If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)

2. Against the Peso?_______ And by what %?

3. Against the Real?_______And by what %?

4. In 2001, the U.S. interest rate was 2%. What were the interest rates in the following countries at the same date, according to covered interest rate parity? (round to nearest integer)

Argenine interest rate________%

Reference no: EM1313134

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