International parity conditions approach The most widely accepted theory of all exchange rate determination theories. If all the international parity conditions are satisfied,then the expected change in the spot rate equals: The expected difference in inflation rates The difference in interest rates. The forward premium or discount.International parity conditions approach The most widely accepted theory of all exchange rate determination theories. If all the international parity conditions are satisfied, then the expected change in the spot rate equals: The expected difference in inflation rates. The difference in interest rates. The forward premium or discount