Response to the following problem:
Integrating IRP and IFE Assume the following information is available for the United States and Europe:
![366_rates.jpg](https://secure.tutorsglobe.com/CMSImages/366_rates.jpg)
a. Does IRP hold?
b. According to PPP, what is the expected spot rate of the euro in 1 year
c. According to the IFE, what is the expected spot rate of the euro in 1 year?
d. Reconcile your answers to parts (a) and (c)