If the international fisher effect holds, and if the following information is given, what should be S(RUB/THB)? The expected inflation in Thailand is 5% The expected inflation in Russia is 12% F(THB/RUB) is 1.10 THB is Thai Baht and RUB is Russian Ruble

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates
Section: Chapter Questions
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If the international fisher effect holds, and if the following information is given, what should be S(RUB/THB)?

The expected inflation in Thailand is 5%

The expected inflation in Russia is 12%

F(THB/RUB) is 1.10

THB is Thai Baht and RUB is Russian Ruble

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