(Solved by Humans)-The inflation rates in the U.S. and Mexico are 7%, and 14%,
Question
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The inflation rates in the U.S. and Mexico are 7%, and 14%, respectively.? If the current spot FX rate of the Mexican Peso (MXN) is $0.1500/MXN, what is your best estimate of the peso's expected future spot FX rate ($/MXN) in 2 years?
a. 0.1829
b. 0.1863
c. 0.1408
d. 0.1321
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