Solved: What is force that causes spot rate to change, Financial Management

What is force that causes spot rate to change

Forecasting the Future Spot Rate Based on IFE

Response to the following problem:

Assume that the spot exchange rate of the Singapore dollar is $.70. The 1-year interest rate is 11 percent in the United States and 7 percent in Singapore. What will the spot rate be in 1 year according to the IFE? What is the force that causes the spot rate to change according to the IFE?

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Financial Management: What is force that causes spot rate to change

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Financial Management: What is force that causes spot rate to change

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