1) The spot rate for the British pound is .7157 = $1 and the Canadian dollar is Can$1.0595 = $1. What is the /Can$ cross-rate?

2) The current spot rate between the pound and dollar is .7547/$. The expected inflation rate in the U.S is 2.27 percent and the expected inflation rate in the U.K. is 2.78 percent. Assuming relative purchasing power parity holds, what will the exchange rate be next year?

3) The spot rate between the Japanese yen and the U.S. dollar is 107.48/$, while the one-year forward rate is 108.21/$. The one-year risk-free rate in the U.S. is 2.67 percent. If interest rate parity exists, what is the one-year risk-free rate in Japan?