1.

2.

3.

what is the value of A? B? C? D?

4.

The Canadian dollar:US dollar exchange rate was C\$1.35/US\$1.One year later, it moved to C\$1.50/US\$1. The Canadian dollar: iosteciated brions aporeciated by 11.1N desmeriated by 10% depreciated by 15% Surprising news of a potential surge in U.S. inflation while Chilean inflation remains unchanged, would likely a. Lead to a stronger dollar versus the peso but only after the actual historical intlation data is published b. Lead to a wesker dollar versus the peso bot onky atter the actual historical inflation data is pribliched d. Lead to a weaker doltar versus the pero immentiattly Use this table for the following questions. Find the values of A, B, C, and D assuming the market is fairly pricing the cross currency rates: 1. Assume you notice the following information. Assume you spend $1 million USD to create an arbitrage trading strategy. What is your profit is USD. Remember to consider the profit after you pay back your loan Spot (CAD/USD) =1.50 1 Year Forward (CAD/USD) =1.60 1 Year Canadian interest rate of 8% in Canadian Dollars (CAD) 1 Year US interest rate of 4% in US Dollars (USD)