1)

Silicon Co. has forecasted the Canadian dollar for the most recent period to be $0.73. The realized value of the Canadian dollar in the most recent period was $0.80. Thus, find the absolute forecast error as a percentage of the realized value.

2)

If the one-year forward rate for the euro is $1.07, while the current spot rate is $1.05. Find the expected percentage change in the euro after one year. Do not write any symbol. Express your answers as a percentage. Make sure to round your answers to the nearest 100th percentage points.