3) (5 points) You observe the following: So = Yen 125/$. RUBLE = 230%/YR. So = DM 0.65/ POUND. idm = 1.2%/YR. F1 yr = Yen 125/$ So = RUBLE 1000/$. xen =0%/Yr. In equilibrium, the expected spot rate for RUBLE/$ (in 1 YR) expressed as Rubles per Dollar must be Ruble /$ 4) The spot rate last year was E 1/$. Over the last year the Euro devalued by 25% against the $. This means that against the Euro: a) $ got stronger by 20% b) $ got stronger by 25% c) $ got stronger by 33.3% d) $ got stronger by 38.2% e) none of the above. 5) The new exchange rate is: Use data form question # 4. a) E 0.75/$ b) E 1.25/$ c) E 1.33/$ d) E 1.38/$ e) none of the above. 3) (5 points) You observe the following: So = Yen 125/$. RUBLE = 230%/YR. So = DM 0.65/ POUND. idm = 1.2%/YR. F1 yr = Yen 125/$ So = RUBLE 1000/$. xen =0%/Yr. In equilibrium, the expected spot rate for RUBLE/$ (in 1 YR) expressed as Rubles per Dollar must be Ruble /$ 4) The spot rate last year was E 1/$. Over the last year the Euro devalued by 25% against the $. This means that against the Euro: a) $ got stronger by 20% b) $ got stronger by 25% c) $ got stronger by 33.3% d) $ got stronger by 38.2% e) none of the above. 5) The new exchange rate is: Use data form question # 4. a) E 0.75/$ b) E 1.25/$ c) E 1.33/$ d) E 1.38/$ e) none of the above