please read the real-exchange rate stuff in the International asset pricing (Portfolio Mgmt) chapter. This question is solved there in great detail.
0.65 USD / CAD with a basket of 0.65 PUSD/PCAD
So Real rate = 1 USD/CAD today.
Price Basket 1 year later = 1.03/(1.05 * 0.65)
So now adjust the 0.61 USD/CAD 1 year later back at the basket rate then. |