Suppose the Euro/Dollar Exchange Rate is €1 = $1.083, the annual US riskfree rate is 4.61%, the US inflation rate is 3.69%, and the annual Eurozone riskfree rate is 6.39%. What is the one-year Forward Euro/Dollar Exchange Rate, the one-year ahead Expected Spot Euro/Dollar Exchange Rate, and Eurozone inflation rate? What is the Percent Difference in:

• the Eurozone Riskfree Rate vs. US Riskfree Rate,

• the Forward Euro/Dollar Exchange Rate vs. the Spot Rate,

• the Expected Spot Euro/Dollar Exchange Rate vs. the Spot Rate, and

• the Eurozone Inflation Rate vs. the US Inflation Rate?