3. Suppose that domestic risk-free rate is 5% annually, and foreign risk free rate is 6% annually. Spot exchange rate between domestic currency and foreign currency is 1:1. (a) According to uncovered interest rate parity, which currency is expected to worth more in one year? (b) According to uncovered interest rate parity, what is the expected exchange rate in one year? (c) According to covered interest rate parity, what is the arbitrage-free one-year forward exchange rate