10)You enter a long position in a future contract with the size of 125,000 today. The futures expire in 90 days. The interest rates are i_$=2% and i=4%. The current spot rate is $1.38/. Assume 360 days a year. If the spot rate is $1.43/ the next day and interest rates remain the same, How much is your profit or loss for this day?

Select one:

a. $6228.80

b. $3974.78

c. $6250

d. -$6228.80

e. -$3974.78

9) The interest rate for Swiss Franc is i_SF=12% and for Japanese yen is i=10%. The expected inflation rate in Switzerland for the next year is 5%. According to the International Fisher Effect, the expected inflation rate and real interest rate in Japan for next year are respectively,

Select one:

a. 3.5% and 7.0%

b. 2.1% and 4.1%

c. 2.0% and 5.0%

d. 7.0% and 7.0%

e. 3.1% and 6.7%