1. A firm in India (whose currency is the rupee) is importing from Korea and must pay in won, the Korean currency. But it does not have to pay for 60 days. It would like to use a forward market to ensure that the exchange rate in rupee per won does not change in a direction that makes it lose money. If a forward market exists between the rupee and the won, then what transaction will it engage in now? 2. If there is no forward market between the rupee and the won, then what transaction(s) will the firm engage in? 3. Why does the fact that "there is no UIP Puzzle at Long Horizons" simply confirm that relative PPP holds