3. (3 points) Denise Smith, an international fund manager, uses the concepts of purchasing power parity (PPP) and the International Fisher Effect (IFE) to forecast spot exchange rates. Amanda Smith gathers the financial information as follows: Both interest rates given above are nominal interest rates. Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively). a. Using the IFE, the expected ZAR spot rate in USD one year from now. (1 point) b. Using PPP, the expected ZAR spot rate in USD one year from now. (1 point) c. Using IRP (interest rate parity), the one year ZAR forward rate in USD. (1 point) ANS: Please label a/b/c in your response to the three sub-questions respectively