The current spot exchange rate korean won


The interest rte on South Korean government securities with one-year maturity is 4 percent, and the expected inflation rte for the coming year is 2 percent. The interest rate on U.S. government securities with one-year maturity is 7 percent, and the expected rate of inflation is 5 percent. The current spot exchange rate Korean won is $1 = W1,200. Forecast the spot echange rate one year from today. Explain the logic of your answer

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Other Subject: The current spot exchange rate korean won
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