As of today, the spot exchange rate is $1.12/€ and the inter…
As of today, the spot exchange rate is $1.12/€ and the interest rates are expected to prevail for the next 5 years in the U.S. is 3% and 5% in the euro zone. What is the expected exchange rate in 5 years according to International Fisher Effect? Show your calculations. (Note: Use USD for $ and EUR for € if you prefer)