Answer :
Answer:
percentage change = 1.90%
Explanation:
Their is a decrease in the rate . The one year forward rate is $1.07 . This means the original number is $1.07. The current spot rate is $1.05 and this means the new number is $1.05.
Decrease = Original - New
Decrease = $1.07 - $1.05 = $0.02.
percentage change = Decrease/original × 100
percentage change = 0.02/1.07 × 100
percentage change = 2/1.07
percentage change = 1.8691588785
percentage change = 1.90%
Answer:
1.90%
Explanation:
the current value of the euro is $1.05 per euro (spot rate)
the future value of the euro is $1.07 per euro (forward rate)
the expected percent change = [(future value - current value) / current value] x 100 = [($1.07 - $1.05) / $1.05] x 100 = ($0.02 / $1.05) x 100 = 1.9047% ≈ 1.9%