1. Assume the interest rate is 16% on pound sterling and 7% on Euro. If the Euro is selling at a one-year forward premium of 10% against the pound, is there an arbitrage opportunity? Explain.

2. If the Swiss franc is $0.64 on the spot market and the 180-day forward rate is $0.70, what is the annualized interest rate in the United States over the next six months? The annualized interest rate in Switzerland is 2%.

3. The interest rate in the United States is 8%; in Japan, the comparable rate is 2%. The spot rate for the yen is $0.007692. If interest rate parity holds, what is the 90-day forward rate on the yen?

4. Here are some prices in the international money markets:

Spot rate = $0.75/SF

Forward rate (one year) = $0.87/SF

Interest rate (SF) = 16% per year

Interest rate ($) = 6% per year

Assume no transaction costs or taxes exist, do arbitrage profits exist?

5. If expected inflation is 100% and the real return is 5%, what will the nominal interest rate be according to the Fisher Effect?

6. Suppose that in Japan the interest rate is 8% and inflation is expected to be 3%. Meanwhile, the expected inflation rate in Swiss is 12%, and the English interest rate is 14%. What is the best estimate of the one-year forward premium (discount) at which the pound will be selling relative to the Swiss franc?

I need help with these questions, please.